{"id":27066,"date":"2024-06-11T19:15:19","date_gmt":"2024-06-11T19:15:19","guid":{"rendered":"https:\/\/www.asesoriaorihuelacosta.com\/?p=27066"},"modified":"2024-06-15T07:31:49","modified_gmt":"2024-06-15T07:31:49","slug":"are-lessors-responsible-to-pay-vat-for-rent-a-property","status":"publish","type":"post","link":"https:\/\/www.asesoriaorihuelacosta.com\/en\/are-lessors-responsible-to-pay-vat-for-rent-a-property\/","title":{"rendered":"Are lessors responsible to pay Vat for rent a property?"},"content":{"rendered":"\t\t
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Landlords of real estate are liable for VAT. In this article we will explain this in detail,<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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Landlords of property and VAT: taxable persons<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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The leasing of real estate is, or is not, subject to VAT depending on the activity carried out there. And, in the event that it has to be paid, it is fixed at the general rate.<\/p>\n

The taxpayer of the tax is the lessor, who is considered, for the purposes of the Value Added Tax (VAT) Law, a businessman or professional and has to register in the census of professionals, businessmen and withholders.<\/p>\n

Therefore, he must collect it from the tenant in order to subsequently pay it to the Tax Agency.<\/p>\n

Take this into account together with the other exemptions in the IRPF.<\/p>\n

However, there are some cases that are exempt from paying this tax.<\/p>\n

Let’s take a closer look at the different possibilities and obligations that arise:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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1. Landlords and VAT: residential dwellings<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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Residential dwellings, provided they have an exclusive residential use, are fully exempt from VAT<\/strong>. This is the first of the major VAT exemptions for the letting of real estate and also applies to garages and storage rooms.<\/p>\n

If this is the case, it is also not necessary to register in the census of professionals, business people and withholders.<\/p>\n

However, there are, within this exception, activities that would be subject to tax: leasing to third parties by a specialised company and tourist flats.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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2. Agro-livestock holdings<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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On livestock farms, there are fixed buildings, such as stables.<\/p>\n

Well, in this case, the rent, although subject to VAT, would be exempt.<\/p>\n

Therefore, no payment should be made for this professional activity. It is important to point this out, because there are other professional activities that are not exempt.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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3. Commercial premises<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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Business premises are subject to VAT, because they are generally considered to be a chargeable activity.<\/p>\n

The landlord-landlord is obliged to invoice 21% VAT and subsequently to pay it to the tax office.<\/p>\n

It should be noted that this applies to any area in which a professional activity is carried out for profit, also in residential or office buildings in flats.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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4. Other special cases<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t
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The rule of charging VAT on leases has other special variables to be aware of. Some examples:<\/p>\n

Housing compatible as a workplace: in this case, VAT should be charged because an economic activity is being carried out.
Renting to non-profit associations and foundations: when this case arises, there is an exemption for the payment of VAT.
Rental with purchase option: if it is between private individuals, and with a duration of more than 10 years, the rental will be exempt from VAT.<\/p>\n

Consequently, it is essential to consult and get proper advice so as not to make mistakes when settling the tax. This will save problems and money in the future.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\r\n\t\t\t\t<\/section>\r\n\t\t\t\t

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Landlords do not have to file the annual VAT summary form 390.<\/h2><\/div>