When dealing with a business transfer, you need to know all taxes associated with these types of contracts; And is that the price of the transfer could be affected. Another thing you should be clear about is that the taxes associated with business transfers are usually paid before starting the activity.
Regarding VAT, the operation of transferring business premises or transferring a business is regulated in:
-Article 7.1.a) of the LIVA: the transfer of a set of corporative and, where appropriate, incorporeal elements that form part of the corporate or professional property, will not be subject to VAT, provided that it includes the transfer of a commercial establishment Or of an autonomous part of a company with bodily elements and, where appropriate, incorporating them, jointly constitute a company or a part of a company capable of developing an autonomous economic activity, ie does not include the mere transfer of goods, Sale of stocks, or the sale of the business separately, in addition it should be noted that it is not necessary for the acquirer to carry out the same activity as the transferor.
However, even if the transfer of business premises or the transfer of a business is not subject to VAT, the transferor must issue an invoice without VAT, for the amount paid for the transfer or assignment of the business.
However, this is not the case, in the case of the owner of the premises, when he receives a part of the transfer. In this case the owner will issue an invoice to the old tenant, for that amount plus 21% for VAT, minus the corresponding withholdings.
As for the income received by the former tenant for the transfer of the business premises or for the assignment of business, must declare and tax in the IRPF as equity gain, which will be calculated by deducting from the amount of the transfer the net value of the assets And rights delivered.
In the event that the former tenant is a company, this tax must be taxed in the Corporate Income Tax (IS).
The owner, in the case of receiving a part of the transfer, must register it as a return on the real estate capital in his personal income tax return, if he is a natural person, being able to apply a reduction of 40% when it is a rent obtained irregularly in time.