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V1099-24 22 May 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de temporada

Seasonal rentals with hotel-style services are subject to 10% VAT

A company has requested clarification on whether seasonal residential rentals including cleaning, concierge, and reception services are exempt from VAT. The DGT has ruled that, as these involve services characteristic of the hotel industry, the transaction does not qualify for the housing exemption and is subject to the reduced VAT rate.

The question raised

Whether said leases are subject to, and if applicable, exempt from Value Added Tax. The applicable tax rate for the same.

The DGT's ruling

The leasing of residential property is not exempt from VAT when the lessor provides complementary services typical of the hotel industry, such as cleaning or changing bed linen on a weekly basis. In this case, the activity is considered accommodation rather than residential leasing. Therefore, these leases are subject to tax and the 10% tax rate must be applied as they constitute hospitality services.

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