Skip to content
Back to index
V2571-20 28 July 2020 · SG de Tributos Locales Criterion in force
OTRO · exención por inicio de actividad

Exemption from IAE applies for first two tax periods upon business start

A real estate promotion company asks about the application of the startup exemption in IAE and the obligation to declare sold square meters. The DGT clarifies that the exemption lasts for two tax periods and that, if exempt, there is no obligation to declare variable share sales.

The question raised

It is desired to know:

The DGT's ruling

The exemption for the commencement of activity in Spanish territory applies during the first two tax periods in which the activity is carried out. The exemption is not applicable in cases of resumption of activity or succession of ownership. In the real estate development heading, the variable quota is required upon the formalization of disposals, whether by public or private document. If the taxable person is exempt during the period of the disposals, they are not obliged to declare the square meters sold.

Book your free first meeting