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A taxpayer inquired whether two flats located one above the other could be treated as a single habitual residence to avoid the imputation of rental income. The Directorate General for Taxes (DGT) ruled that, as they are not connected internally, income must be imputed for the property that is not the taxpayer's habitual residence.
Taxpayers owning multiple properties that are physically adjacent but lack internal access must treat them as separate entities for tax purposes, potentially increasing their tax liability through the imputation of rental income.
The tax team reviews your specific situation.
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