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V0621-22 ·23 March 2022 ·consulta-vinculante Medium impact
Tax

Unpaid rental income may be deducted as bad debt after three months of collection efforts (in 2021)

A landlord seeks guidance on how to declare rental income in their Personal Income Tax (IRPF) that has remained unpaid since January 2020. The Directorate General of Taxes (DGT) clarifies that the full income must be declared even if not collected, but the debt may be deducted as bad debt once the required collection period has been met.

In 5 key points

How it affects those involved

This clarification provides certainty for landlords regarding the timing and method for deducting uncollected rents as deductible expenses for tax purposes.

Lifecycle

2022-03-23PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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