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V3169-18 12 December 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de capital inmobiliario

Holiday home rentals without hotel services may be VAT exempt and taxed as investment income

A taxpayer inquired about the taxation of a property used for holiday rentals without additional services. The DGT ruled that the lease is exempt from VAT if it is intended for residential use and does not provide hotel services, and that the income constitutes real estate investment income as there are no full-time employees.

The question raised

Taxation under Value Added Tax, Economic Activities Tax, and Personal Income Tax.

The DGT's ruling

The leasing of housing for exclusive residential use, without hotel industry services and intended for natural persons, is exempt from VAT. In the IAE, the activity is classified under group 685 for non-hotel tourist accommodations. In the IRPF, the income constitutes returns on real estate capital if no hotel services are provided and no person is employed under a full-time employment contract.

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