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Exemption: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Stricter position Medium confidence 14 rulings · 2014–2024

Current position

The exemption from withholding tax on urban real estate leases requires that the lessor's activity belongs to group 861 of the IAE (Economic Activities Tax) and that the amount resulting from applying said rules to the cadastral value is not zero. If the IAE amount is zero, the requirement for the exemption is not met, and the lessee company must apply the withholding. This obligation to withhold remains as long as the exemption exceptions provided for in the IRPF (Personal Income Tax) Regulations do not apply.

The DGT's position on the exemption from withholding tax on leases has moved from an interpretation that allowed the exemption based on group 861 of the IAE, to a tightening through the requirement that the resulting amount is not zero. The most recent rulings confirm that if the amount is zero, the obligation to withhold persists. No evolution is observed in other areas such as the reporting of foreign accounts or installment payments, which appear as isolated criteria.

Turning points

  1. V2509-24

    Establishes that the exemption does not apply if the IAE amount is zero when applying the group 861 rules to the cadastral value, preventing the exemption in cases of low cadastral values.

Analysis based on 14 of 14 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

14
V1202-14 29 Apr 2014

Civil society exempt from foreign assets reporting if accounts are kept

SG de Tributos
sociedad civildeclaración informativacontabilidadentidades en el extranjeroexoneración RGAT — RD 1065/2007, Reglamento General de Actuaciones Tributarias art. 42 bis.4.bRGAT — RD 1065/2007, Reglamento General de Actuaciones Tributarias art. 42 ter.4.b
Affects CompanyExpat · Non-residentIndividual

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