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V1771-20 3 June 2020 · SG de Tributos Locales Criterion in force
OTRO · ibi

Leasing a property with IBI exemption for historical heritage results in the loss of said exemption

A query was raised regarding whether leasing a building exempt from IBI (Property Tax) due to its status as a historical monument constitutes an economic activity. The DGT ruled that leasing is an economic activity and that dedicating the asset to such activity nullifies the exemption.

The question raised

Whether the act of leasing the aforementioned property can be understood as the development of an economic activity, with the consequent loss of the exemption currently enjoyed.

The DGT's ruling

The IBI exemption for assets declared as monuments or historical gardens requires that the property is not used for economic activities. The leasing of real estate constitutes an economic activity; therefore, the transfer of the asset, even if partial, results in the loss of the exemption for the entirety of the property. The owner must communicate this modification to the City Council so that the loss of the tax benefit occurs.

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