In the Legal Observatory of Declarando, they report how those self-employed who They have premises or homes for rent. This is a recurring situation that has recently undergone changes after the pronouncement of the General Directorate of Taxes as a result of the binding consultation V1374-21.
“Any owner of a property who wants to rent it professionally must register in the corresponding section of the IAE, which varies depending on the purpose of the rental”, Highlights Marta Zaragozá, CEO of Declarando. “Now, if it is about the rental of a habitual residence, this obligation is not necessary “, qualifies.
Following inquiries DGT V0898-17, DGT V0931-11 and DGT 1482-02, The General Directorate of Taxes indicates that the rental of flats or apartments for weekends or specific periods of time, without the owner of the rental activity providing any other type of service to the tenant, constitutes an activity of the IAE 861.1 of the Rent household.
“Until now, the Treasury considered vacation rentals as an economic activity of the owner, so it had to be registered in the corresponding section of the IAE. As a result of the pronouncement of the General Directorate of Taxes, it will only be necessary to do so if there are contracted services for the property ”, explains Marta Zaragozá.
Personal income tax withholdings in self-employed rental contracts
Self-employed workers who rent their premises or homes to other self-employed are in need of issue invoices on which a withholding of 19% is applied in personal income tax. This is a situation that does not occur if the lease is dedicated to a habitual residence. This obliges tenants to file quarterly with the Treasury model 115 and, annually, the model 180.
However, the Personal Income Tax Regulation establishes a series of exonerations Certain professionals can be applied to these withholdings if they meet one of the following requirements:
- That it is a company housing lease for your employees.
- That the rents paid by the tenant to the same landlord do not exceed 900 euros per year.
- To prove these circumstances, it will be necessary to request an exemption certificate from the Tax Agency.
How does the withholding exemption certificate work?
Self-employed workers who are dedicated to the rental of premises or offices, and those who are tenants of an office, have the right to request a certificate of exemption from withholdings, as long as they meet any of the two aforementioned requirements, which will allow them to the corresponding income tax withholding is not applied to them.
“The exemption certificate is valid during the calendar year in which it is issued and from the moment the certification is delivered to the interested party”, Explains Marta Zaragozá. “This means that until the effective delivery of the document to the lessee, the Treasury will apply the corresponding withholding “, concludes.
What expenses can a self-employed person deduct from the rental of premises?
Owners who have rented premises for business purposes, such as offices, may deduct VAT by submitting form 303 on a quarterly basis. In addition, the expenses of supplies corresponding to the months in which the rental contract has been extended may be deducted in the personal income tax.
The self-employed whose purpose of the rental is tour, and that they have contracted hosting services, the expenses of that property can be deducted throughout the year regardless of the months that it is rented.