Usufruct of furnished homes with services will be taxed at 10% VAT

The nature of the complementary services and the condition of the home when a usufruct right is established determine the applicable tax rate for Value Added Tax (IVA). The Dirección General de Tributos (DGT) has specified the tax treatment of cohousing operations where rights of use are transferred along with assistance and cleaning services.

What the DGT has resolved

The administration has established that the establishment of usufruct rights that include cleaning and periodic assistance services will be taxed at the reduced rate of 10% VAT, provided that the homes are delivered furnished. In the event that the housing units are delivered without furniture, the operation is considered subject to but exempt from this tax.

Furthermore, the ruling addresses the independence of medical services. Health services that usufructuaries contract voluntarily have a separate tax treatment. These services may be exempt from VAT if they meet the requirements for medical assistance provided by professionals regulated by Law 44/2003 on the regulation of health professions.

What it means for you

For developers of cohousing or collaborative housing projects, this criterion defines the cost structure and the final price for the user. The applicable VAT rate will depend directly on the configuration of the product: the inclusion of furniture and assistance services transforms an exempt operation into one subject to the 10% rate.

For end users, this implies that the cost of the usufruct right will be conditioned by the home's equipment. Additionally, they must take into account that any additional medical assistance service is not integrated into the usufruct rate, but is instead invoiced independently according to its healthcare nature.

What should be done

It is necessary to analyze the composition of the commercial offer of collaborative housing projects. The decision to deliver homes furnished or not alters the tax burden of the main operation. Likewise, the management of additional medical services must be carried out separately to ensure that the corresponding exemption is applied if the professional requirements demanded by current regulations are met.