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V0682-19 27 March 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Leasing an apartment for tourist exploitation is taxed as income from real estate capital in IRPF and is subject to VAT

A property owner sought clarification on the classification of income derived from leasing an apartment to a company for tourist exploitation. The DGT ruled that, provided it does not constitute an economic activity, the income is classified as income from real estate capital for IRPF purposes, and the transaction is subject to VAT as it includes hospitality services.

The question raised

1st Classification of the income obtained from said assignment.

The DGT's ruling

If the lease is not an economic activity, the income constitutes income from real estate capital in the Personal Income Tax (IRPF). Expenses for repair, maintenance, and interest on third-party capital are deductible within legal limits. Regarding VAT, if complementary hospitality services are provided, the transaction is not exempt. If the owner leases to an intermediary acting in their own name, the lease is taxed at 21% and the service to the final customer at 10%.

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