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V1730-21 3 June 2021 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · arrendamiento con opción de compra

Taxation of lease-purchase agreements depends on VAT and ITPAJD classification

A query was raised regarding which taxes must be paid when signing a residential lease agreement with an option to purchase. The DGT explains that the application of ITPAJD depends on whether the transaction is subject to or exempt from VAT, and analyses the independence of the lease, option, and exercise agreements.

The question raised

Which taxes must be paid upon signing the contract, whether for the lease or for the purchase option.

The DGT's ruling

If there is no commitment to exercise the option, the lease constitutes a provision of services. If the transaction is subject to and not exempt from VAT, it is not subject to transfer tax, but it is subject to documented legal acts. If the transaction is exempt from VAT, it shall be taxed under the modality of onerous transfers of assets. The option right is taxed upon its creation, regardless of whether it is ultimately exercised or not.

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