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V1640-14 26 June 2014 · SG de Fiscalidad Internacional Criterion in force
IRNR · gravamen especial sobre bienes inmuebles

Non-resident entities in tax havens exempt from property tax levy

A US-based company asks whether, following the 2013 reform, it must apply for exemption from the special property tax levy (GEBI). The DGT clarifies that, as it is not a resident of a tax haven, it is no longer subject to the tax and does not need to file a declaration.

The question raised

Whether, since the entry into force of the new regulation, effective from January 1, 2013, the formal obligation of the company to request the exemption from the payment of the Special Tax on Real Estate (GEBI), applicable to entities owning real estate in Spain, is eliminated.

The DGT's ruling

Since January 1, 2013, the special tax only applies to entities resident in countries considered tax havens. As this is not the case for the taxpayer, they are not subject to the tax nor have an obligation to file a return. Regarding previous periods, the exemption depended on compliance with substantive requirements and the filing of the return with the required documentation within the payment deadline.

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