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V0921-25 26 May 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · retención a cuenta

Canarian general indirect tax to be excluded from IRPF retention base

The DGT confirms that, like VAT, the Canarian General Indirect Tax must be excluded when calculating IRPF retention on urban property rentals.

The question raised

Whether, for the purposes of calculating the withholding tax on Personal Income Tax in a lease or sublease of urban real estate, the Canary Islands General Indirect Tax must be excluded from the amounts paid to the lessor.

The DGT's ruling

To calculate the 19 percent withholding tax on income from the lease or sublease of urban real estate, the percentage must be applied to all amounts paid to the lessor, excluding Value Added Tax. Therefore, for the calculation of the withholding tax, the Canary Islands General Indirect Tax must be excluded from all amounts paid to the lessor.

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