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V0311-21 19 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · subarrendamiento

Leasing housing to a cooperative for use by supervised residents is subject to 21% VAT

A cooperative managing supervised housing has requested clarification on whether leasing a property to its users is exempt from VAT and whether it must withhold Income Tax (IRPF) from the owner. The Directorate General for Taxes (DGT) has ruled that the lease is subject to VAT as it is considered an onerous sublease, and that the cooperative is required to perform IRPF withholding.

The question raised

It requests to know whether the rental of a dwelling to a company whose corporate purpose is the creation and management of supervised housing is exempt from VAT, as well as whether the cooperative is obliged to withhold Personal Income Tax (IRPF) from the lessor for the payment of the rent of the dwellings it grants to its supervised users.

The DGT's ruling

The lease of a dwelling to a cooperative that grants its use to supervised users is subject to VAT at the general rate of 21%, as it is considered a sublease for consideration since income is received for the service. Regarding Personal Income Tax (IRPF), the lessee entity is obliged to apply withholding tax on the rental income, unless one of the legal exceptions applies.

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