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V4052-15 16 December 2015 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · actividad económica

Having a single full-time employee is sufficient to qualify as an economic activity

A query was raised regarding whether acquiring new rural estates for lease would require hiring more staff to maintain the exemption from Wealth Tax. The Directorate General for Taxes (DGT) ruled that having at least one person employed under a full-time labour contract is sufficient.

The question raised

Whether the incorporation of one or more rural estates for lease to third parties for hunting or agricultural purposes would require new or additional employees under the same circumstances as the currently existing ones.

The DGT's ruling

To determine whether an entity carries out an economic activity, reference is made to the provisions of the Personal Income Tax Act. Pursuant to Article 27.2 of Law 35/2006, for the classification of the activity, it is sufficient that at least one person employed under a full-time labor contract is used for its organization. This is valid regardless of the number or type of properties intended for lease.

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