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V2699-20 3 September 2020 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de inmuebles

Leasing of residential property for holiday sub-letting is subject to VAT

A company has requested clarification on whether the rental of a property by a non-resident owner for holiday let purposes is subject to VAT and who the taxable person is. The DGT has ruled that the transaction is subject to the tax and that the tenant company is the taxable person.

The question raised

Whether said lease is subject to Value Added Tax. The taxable person for the same.

The DGT's ruling

The lease of a property intended for subletting for holiday purposes is subject to VAT, as it does not meet the housing exemption. A non-resident owner will not have a permanent establishment if they do not have human and technical resources, whether their own or subcontracted, available in Spain to provide the leasing service. In this case, the lessee company shall be the taxable person for the tax.

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