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V2522-23 21 September 2023 · SG de Impuestos sobre el Consumo Criterion in force
IVA · empresario o profesional

Leasing of tourist apartments may be subject to VAT depending on the activity and services provided

The Spanish Tax Agency (DGT) determines that a foreign investor is a VAT entrepreneur and that the lease is subject to VAT because the manager sublets the property for commercial purposes.

The question raised

1. Whether Belgian investors or those from other Member States of the European Union are considered entrepreneurs or professionals for Value Added Tax purposes and the taxation of the transfer of use of the apartments to the management entity.

The DGT's ruling

Investors who exploit tourist apartments as lessors are considered entrepreneurs or professionals for VAT purposes. The lease to the management company is subject to the general rate of 21% because the management company sublets the properties as part of an economic activity. The use of the apartments by the investors is considered self-consumption of services subject to 10%. No permanent establishment exists if the investor does not have their own human and technical resources in Spain to manage the leases.

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