Skip to content
Back to index
V0675-14 12 March 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de bienes

Vizcaya competent for VAT and IRPF in community of property

A community of property with assets in Vizcaya seeks clarification on tax jurisdiction for VAT and IRPF, and on deductibility of works. The DGT confirms that the Diputación de Vizcaya is competent for VAT and for the community member resident in the Basque Country.

The question raised

1st. In relation to Value Added Tax, it is requested to determine:

The DGT's ruling

Regarding VAT, competence lies with the Provincial Council of Vizcaya because the community has its tax domicile in the Basque Country and the properties are located there. For Personal Income Tax, the applicable regulations depend on the habitual residence of each co-owner: common regulations for those residing in common territory and provincial regulations for the resident in Vizcaya. Repair and maintenance expenses are deductible as income from real estate capital, whereas segregation costs are integrated into the acquisition value for depreciation purposes.

Book your free first meeting