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V2516-23 18 September 2023 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · actividad económica

Property leasing may constitute an economic activity if at least one full-time employee is hired

The applicant inquired whether managing hotel leases through a full-time employee constitutes an economic activity and if they qualify for the reduced tax rate for new businesses. The Directorate-General for Taxes (DGT) stated that employing such staff allows the activity to be classified as economic and analysed the application of tax rates under current regulations.

The question raised

Whether the management of the hotel lease to be carried out by the consulting entity during its term, for which it has one person under a full-time employment contract in the category of asset manager (Asset Manager), complies with the requirements established in Article 5 of Law 27/2014, of November 27, on Corporate Income Tax; that is, whether the consulting entity is considered to be carrying out an economic activity of real estate leasing.

The DGT's ruling

For the leasing of real estate to constitute an economic activity, the organization of means is required which must include, at a minimum, one employee under a full-time employment contract. In this case, the hiring of an asset manager for the management of the hotel appears to determine the existence of an economic activity, subject to the substantiation of the facts. Regarding the reduced rate of 15%, the entity could comply if it carries out an economic activity, provided that it is not an activity transferred by related parties or previously exercised by a partner with more than a 50% stake.

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