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New guides on the latest Spanish tax and immigration developments.
Practical tools for informed decision-making.
A taxpayer inquired whether they must declare income for a property lent free of charge to their brother and another property that is illegally occupied. The Directorate General for Taxes (DGT) ruled that free transfers of use trigger imputed income, whereas illegally occupied properties are exempt from such imputation once eviction proceedings have been initiated.
This ruling clarifies the tax treatment for property owners facing illegal occupation, providing relief from imputed income obligations provided that legal action to recover the property is underway.
The tax team reviews your specific situation.
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