The leasing of residences used exclusively as homes, with their furnishings, garages and annexes (rented together when this is established in the rental contract), is a VAT-exempt transaction. As such, the lessor will not charge nor pay VAT, nor is the lessee obliged to pay it.
This exemption is not applied in cases whereby a property has mixed use, such as a residence and professional office.
The lease of furnished residences is not exempt from tax when the lessor undertakes to provide services characteristic of the hotel industry (such as cleaning, washing clothes, sheets, towels, etc.).
Neither is the lease of furnished residences by legal persons, ceding their use, for use as residences for employees exempt from the tax.