As of January 31, 2014 and until December 31, 2014, all housing rental contracts not subject to VAT (“Impuesto sobre el Valor Añadido”) will be subject to Property Transfers and Documented Legal Acts (“Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados”) by a 0.3%. This percentage will be calculated over the total amount to be satisfied for the entire term of the contract.
The housing rental contracts containing a clause regarding the compulsory extension of the contract shall be taxed taking into account a minimum period of 3 years. In the event that there is no specification regarding the term of the contract, the calculation shall be carried out taking into account a period of 6 years.
As of January 1, 2015 the tax rate to be applied regarding housing rental contracts will be 0.5%.
