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V0958-15 ·26 March 2015 ·consulta-vinculante Medium impact
Tax

Unpaid rents are treated as gross income and may be deducted as bad debts

A commercial property owner asks how to declare rental income from a tenant who stopped paying in 2012 but will settle in 2015. The DGT clarifies that income must be declared in the year it accrues and that unpaid amounts may be deducted as bad debts, provided specific requirements are met.

In 5 key points

How it affects those involved

This clarification provides certainty for landlords regarding the timing of tax declarations for rental income and the conditions under which unpaid rents can be written off for tax purposes.

Lifecycle

2015-03-26PublishedPublished 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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