I rent a property, do I have to pay VAT?
The leasing of homes used exclusively as such, with furniture, garages and annexes (leased jointly when so established in the lease contract), is an operation exempt from VAT , therefore The lessor will not have to pass on this tax.
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%.