Frequently asked questions in relation to VAT on property rentals

Expenses for supplies of gas, electricity, water, repairs, consulting, management or advertising expenses , among others, as well as the VAT payments borne by the , are entitled to deduction acquisition of the rented property ##2##and, where applicable, the rented furniture along with it.

Given that the real estate rentals you carry out are subject to VAT, but some are exempt from the tax and others are not, in principle you can only deduct the contributions borne in a certain proportion ( pro rata ). The amount to be deducted can be calculated by applying the general apportionment or the special apportionment.

• General apportionment : A percentage of the total input VAT is deducted, the percentage represented by the rentals for which VAT is charged with respect to the total.

• Special prorate : Only the input VAT on invoices corresponding to expenses or purchases of capital goods used in rentals with VAT and a percentage of common expenses (the general proportion) are deducted.

When the landlord is a community of property, the invoice must include the identifying data of the same , not giving the right to deduction if only one of the commoners is listed.

If the leased property belongs jointly to a married couple under a community property regime , with only one of the spouses having registered in the business census as the landlord, the invoice will be issued in the name of the latter.

Yes, as long as you are waiting for a new rental contract.