Back to index
V1898-23 29 June 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · exención de participaciones

Full-time employee required for real estate leasing to qualify for Wealth Tax exemption

A taxpayer has enquired whether their shares in a real estate leasing company are exempt from Wealth Tax. The DGT clarifies that for leasing to be classified as an economic activity, there must be at least one employee under a full-time employment contract, and management functions cannot be performed by the same person responsible for the labour management.

The question raised

Compliance with the conditions for the exemption of holdings in Wealth Tax.

The DGT's ruling

For the leasing of real estate to constitute an economic activity, there must be at least one employee under a labor contract working full-time. The exemption of holdings requires that the entity does not primarily manage real estate assets and that ownership and management requirements are met. Management functions and the management of the leasing activity (labor employee) cannot be performed by the same person, as full-time employment does not allow for the compatibility of both tasks.

Book your free first meeting