Skip to content
Back to index
V2880-19 18 October 2019 · SG de Impuestos sobre el Consumo Criterion in force
IVA · arrendamiento de vivienda

Rental of rural houses with hospitality services subject to 10% reduced VAT rate

A taxpayer inquired whether the rental of rural tourism accommodation, including cleaning services, linen changes, and breakfasts, is exempt from VAT. The DGT ruled that because the operation includes services typical of the hotel industry, it is not exempt and must be taxed at the reduced rate.

The question raised

Subjectivity of the activity to be carried out in the rural house and the applicable tax rate of the Value Added Tax.

The DGT's ruling

The leasing of real estate intended for residential use is exempt from VAT provided that no complementary hotel industry services are provided. If the lessor provides services such as cleaning or linen changes on a weekly basis, the activity is considered lodging. In this case, the lease ceases to be exempt and the 10% tax rate applies.

Book your free first meeting