Frequently asked questions in relation to VAT on property rentals

Yes, it is a rental subject to and not exempt from VAT which is taxed at 21%.

No. The rental of the home is exempt from VAT . It is subject to the Capital Transfer Tax (ITP), which is the responsibility of the Autonomous Communities, and is exempt if it is a lease for stable and permanent use.

The VAT exemption includes garages and accessory annexes (storage rooms) as well as jointly rented furniture.

It depends on who the lessor is, whether it is a financial leasing company (the contract must have a duration of more than 10 years) or the property developer, the lease is subject to and not exempt from VAT.

The lease of the dwelling is exempt from VAT. It is subject to Capital Transfer Tax (ITP), which is the responsibility of the Autonomous Communities.

To do this, the lease agreement must specifically and concretely state the person/s who will be the ultimate user/s of the property.

The lease of the dwelling is exempt from VAT. It is subject to Capital Transfer Tax (ITP), which is the responsibility of the Autonomous Communities. The exemption is applicable because the Association or Foundation, by renting for free, does not become a businessman for VAT purposes, acting as a final consumer without prejudice to allowing other people to use the home.

Yes, it is a rental subject to and not exempt from VAT that is taxed at 21% (the tenant does not use it as a home, but in turn rents it)

The activity consisting of the rental for periods of time of homes or part of them, without providing any service typical of the hotel industry and limiting itself to making the home available to the tenant, who intended for exclusive use as a home, it is exempt from VAT, so the tax will not be passed on.

If hospitality services are provided, the rent will be taxed at 10%. 

If it is rented together with the home, it is a taxable and exempt transaction. In other cases, the lessor must charge a VAT of 21%.

Yes, it is a rental subject to and not exempt from VAT that is taxed at 21% since the property is not used as a home.

Yes, it is a rental subject to and not exempt from VAT that is taxed at 21% since the property is not used exclusively as a home.

The lease of land is exempt from VAT , unless the land is used for vehicle parking, storage or storage of products, installation of elements of a business activity or exhibitions or advertising. In these cases, the rent is subject to tax and not exempt, with the applicable rate being 21%.

Yes, given that the rental of the premises converts the individual into a businessman for VAT purposes and it is an activity for which VAT is charged and therefore generates the right to deduction.

It must be taken into account that in the transfer of a property with waiver of VAT exemption, the buyer is obliged to declare the VAT accrued in the sale by "reversal of the taxable person" in boxes 12 and 13 of model 303. It will also declare the deductible VAT.