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V1997-24 18 September 2024 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de vivienda

Tourist accommodation rentals without hotel services are VAT exempt, but management services are taxable

A owner of a tourist rental property has enquired about the VAT status of their rental and the management services provided by a company. The DGT has ruled that the rental is exempt if no hotel-like services are provided, whereas the management company's intermediation is subject to the 21% rate.

The question raised

Liability and, where applicable, exemption from Value Added Tax regarding said lease.

The DGT's ruling

The leasing of real estate for residential use is subject to but exempt from VAT, unless complementary hotel industry services are provided (such as cleaning or linen changes on a weekly basis). Intermediation carried out by a management company on behalf and for the account of the owner is considered a service related to real estate and is subject to the general rate of 21%. If the management company is not established in Spain, it remains the taxable person for the transaction without the application of the reverse charge mechanism.

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