Skip to content
Back to index
V1410-17 5 June 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de vivienda

Residential leases with weekly cleaning and linen change services subject to 10% VAT

The applicant inquired whether purchasing a property for holiday rentals is exempt from VAT and how additional services are taxed. The DGT has ruled that if weekly cleaning and linen change services are provided, the activity is classified as accommodation rather than a residential lease, thus attracting a 10% VAT rate.

The question raised

1. Whether the purchase of the property will be exempt from Value Added Tax when acquired from an entrepreneur or professional.

The DGT's ruling

The leasing of housing with cleaning services and linen changes on a weekly basis is considered a lodging activity and not a residential lease. These complementary services, characteristic of the hotel industry, render the operation subject to, rather than exempt from, VAT, with the reduced rate of 10% being applicable. Laundry services are considered ancillary to the lease, but others such as excursions, childcare, or transfers are independent services.

Book your free first meeting