Renting a house is getting more expensive. according to the last pisos.com rental price reportAverage rent for an apartment in Spain 10.41 euros per square meter In January 2023, it increased by 3.38% compared to the same month of the previous year. However, in addition to the monthly payment, there are other costs that can mean an extra expense depending on how the rental is done.
In this sense, keeping up with the Treasury in every aspect of our daily lives becomes an obsession. We must know what procedures we must follow or the payments we have to make. in case of House for rentthere Cases where VAT is applied. We will try to clarify the situation and help you see everything as clearly as possible.
The company rents a house for its employees.
Although the use of the residence will be made by an arbitrary person here, the person appearing as the owner of the contract will be a legal person. This Tax Administration At this point it is very clear: the relevant VAT will be paid without restriction. True, in this case, justice ruled otherwise to the law Central Economic-Administrative Court (TEA) In its decision dated 15 December 2016, it was ruled against the collection of this tax even though it is a lessee company. This will be so as long as it is proven that the use of the property remains in the hands of a person and appears in the property. rental contract.
Mixed use of rental property
It may be possible to use the immovable as a mixed house and a workplace. HE VAT payment In this case, it is mandatory. And the payment is not intended only for the part allocated to the labor activity, that is, as a percentage corresponding to the surface allocated to this use. The corresponding amount of the total property will have to be paid.. In this case, the law is also against the economic interests of the company, because when it comes to withholding taxes on the quarterly return, it will only do so for the percentage of space devoted to business activity. Here we can think that the law is clearly unfair to both parties.
Rental with option to purchase
Another Cases in which the tenant is liable to pay VAT in case of Rental with option to purchase. This should be clearly reflected in the lease agreement. The clause allowing the purchase of property after a certain period of time is currently not regulated. This will allow the contracting parties to stipulate what they accept without limitation, as long as it is not against the law. After the time specified for the purchase of the property the tenant may or may not buy the propertyyou don’t have to do this.
Payment of VAT on these properties will be mandatory as long as the property has not been rented before, ie it is a new construction. This VAT payment, during the contract, buying a house. Then all you have to do is pay VAT on the remaining amount. If the tenant decides not to buy the property after the stipulated period, if he decides to continue renting the property without the option to buy, he will stop paying VAT in the new contract. Of course, the VAT paid up to that point will be lost.