At the moment the rate for VAT applicable for tourist Rental Tax Obligations is 10%. The application of this rate depends upon the complementary services that are offered. We can take as a reference the following services expressly determined by the General Directorate of Taxes to be considered as complementary Services that are directly related to the hotel industry:
-Weekly cleaning inside the accommodation.
-Weekly change of linen and bedding.
On the contrary, the following services are NOT considered to be directly related complimentary services:-
-Entrance and exit cleaning service
-Linen and bedding change service provided only at entrance and exit
– Cleaning services for common areas (i.e. foyer, stairs, and lifts), nor in the urbanization (i.e. green areas, entrances, and pathways).
-Technical assistance for any repairs carried out for plumbing or electrical faults, glass, lock, or appliance breakage or repairs.
Vat tax & Property Lawyers in Spain
Following are some examples showing the rate of tax that should be applied in each situation:-
- When the owner of the property rents to a tenant directly and does not provide the complementary services stated in the first paragraph the rental paid would be exempt from VAT.
- When the owner of the property rents to a tenant directly, but in this case does provide the complementary services stated in the first paragraph, the rental paid would be subject to the application of 10% VAT.
- When the owner of the property rents to professionals or businesses in order to exercise their professional activity in the property then rate of VAT to be applied would be 21%, as it is considered that as an intermediary is involved the owner is not directly providing any services. Thus the intermediary would be the one to charge 10% VAT directly to the tenant.
Manilva Solicitors would like to recommend that you make a free appointment with one of our specialists to discuss your particular case.
MARBELLA SOLICITORS GROUP
Jose M. Lopez-Avalos – Solicitor
Tel. 952 901 225 – mail@marbellasolicitors.com
