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A taxpayer inquired about the taxation of the free transfer of use of several properties to a family member. The DGT ruled that, if the free nature of the transfer is proven, there are no real estate capital returns, but an imputation of income must still be made based on the cadastral value.
Taxpayers providing free use of urban properties to relatives must still account for imputed real estate income in their tax returns based on cadastral values.
The tax team reviews your specific situation.
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