Skip to content
Back to index
V2573-20 28 July 2020 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre actividades económicas

No registration in the IAE required for non-profit home renovations

A taxpayer inquired whether they must register for the Economic Activities Tax (IAE) after hiring two people to renovate their own home without seeking profit. The DGT ruled that there is no obligation to register or contribute to the tax.

The question raised

Inquiry as to whether there is an obligation to register for the tax.

The DGT's ruling

For an activity to be considered economic and constitute the taxable event for the IAE, it must involve the self-organization of means of production and/or human resources with the purpose of intervening in the production or distribution of goods or services. The renovation of one's own dwelling for personal use does not have that purpose, and therefore is not considered an economic activity.

Book your free first meeting