Article 36 of the Law of the Consolidated Text of the provisions issued by the Autonomous Community of Andalusia in matters of assigned taxes, approved in Legislative Decree 1/2018, of June 19, amended by Decree Law 1/2019, of April 9, establishes a reduced rate of 2% for purchases of real estate in the Junta de Andalucía, meeting certain requirements.
As the name of the article itself indicates, this reduced rate was approved for the resale of real estate by real estate professionals, in order to encourage this market.
In the world of tax advice there is an issue that has always generated deep controversy: is it possible to rent a property whose acquisition, the owner has benefited from the reduced rate?
In our opinion, it would not be possible for the following main reasons:
– One of the requirements for the application of the aforementioned tax benefit is that the property be incorporated into the current assets of the company, in order to be available for resale. However, a rented property cannot form part of the current assets of an entity and should be accounted for as a fixed asset, so this requirement would not be met.
– The sole purpose of the acquisition of the property must be its resale, which is contrary to placing the property on the rental market.
This criterion has been the one defended and maintained by the Tax Authorities of Andalusia from 2015 up to date, having received knowledge ou firm of the reception of these liquidations by tax payers during the present 2023.
We hope you find this information useful. Should you have any query we remain at your disposal.