I bought a property off plan which the developers’ letting agency is now renting out for me. They recently drew up a new contract which amongst other things means I will be required to invoice them for rent (including IVA). They will in turn sublease the property to tenants.

If I register for IVA, one benefit is that I can reclaim the IVA paid on the purchase price of the house, but I could do without the extra admin and cost of preparing IVA returns. Also, I would presumably have to charge IVA if I sell the property.

Should I agree to their new contract and register for IVA, or find another agent?

Will you pay tax when you shop , eat are stay in hotels but should looking in to the law as you could pay there full rent iva not the price you get payed
need get in touch with the tax man and fine out

therapyindex - 27 November 2007 03:57 PM

I bought a property off plan which the developers’ letting agency is now renting out for me. They recently drew up a new contract which amongst other things means I will be required to invoice them for rent (including IVA). They will in turn sublease the property to tenants.

If I register for IVA, one benefit is that I can reclaim the IVA paid on the purchase price of the house, but I could do without the extra admin and cost of preparing IVA returns. Also, I would presumably have to charge IVA if I sell the property.

Should I agree to their new contract and register for IVA, or find another agent?

I really don’t think it is as simple as that, the renting of normal apartments/houses in spain is not IVA applicable. To be IVA registered you need to be letting apartments on an Apartamento Turistico basis which requires licenses from the applicable Tourism associations and with this comes certain requirements you have to meet, daily cleaning, reception area etc. etc.

I don’t know what the letting agent is up to but I would have this contract reviewed by a third party.