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V0346-18 8 February 2018 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de vivienda

VAT deduction on property acquisition is possible if subsequent leasing is taxable rather than exempt

A residential landlord has enquired whether they can deduct VAT from the purchase of a property leased to a company for tourist rental purposes. The DGT has ruled that the lease ceases to be exempt and becomes taxable (subject and not exempt) when the tenant subsequently sub-lets the property as part of a business activity, thereby enabling the right to VAT deduction.

The question raised

Cuestión planteada Deducibilidad de las cuotas del Impuesto sobre el Valor Añadido soportadas en la adquisición de la vivienda.

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