I rent a property, do I have to pay VAT?
The rental of dwellings used exclusively as such, with furniture, garages and annexes (jointly leased when established in the lease agreement), is an operation exempt from VAT, and therefore the lessor must not pass this tax on.
The exemption will not apply and the lessor will charge VAT:
If the dwelling is attributed a mixed use, as a dwelling and as a professional office. The rate will be 21%.
When the lessee is a real estate agent or other businessman, even if he rents it to private individuals for their use as such, the applicable rate is 21%. However, if the lessee is a company and the lease is for the use of its employees, the lease is exempt when the lease contract specifically identifies the person(s) using the property.
In the case of furnished residences, when the lessor undertakes to provide services characteristic of the hotel industry (such as cleaning, washing clothes, sheets, towels, etc.). The rate will be 10%.