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A property owner inquired whether renting out her rural house, where she only provides basic services such as key handover and occasional cleaning, constitutes an economic activity. The DGT ruled that, as she does not provide hospitality industry services nor employs staff or maintains a premises, the income is classified as income from real estate capital.
This ruling clarifies the distinction between real estate capital income and business activity for rural property owners, affecting how income is reported and taxed.
The tax team reviews your specific situation.
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