Skip to content
Back to index
V2619-17 13 October 2017 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de negocio

Transfer of a rural holiday home business subject to 21% standard VAT rate

A rural holiday home owner inquired about the VAT rate applicable when leasing her business to two individuals. The DGT has ruled that the transaction is subject to the standard rate of 21 per cent.

The question raised

Applicable tax rate for the transfer of the described business.

The DGT's ruling

The lease of a rural house business operation constitutes a transaction subject to and not exempt from VAT. As it is a business lease and there is no provision allowing for the reduced rate, the general tax rate of 21 percent applies. Likewise, the exemption for the lease of residential property is not applicable because the purpose is not use as a residence by the lessee, but rather the exercise of a business activity.

Book your free first meeting