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A property owner lends their second home to their daughter for use without a formal lease agreement, and the daughter covers the current expenses that would normally be the father's responsibility. The Directorate General for Taxes (DGT) has ruled that these expenses paid by the daughter are considered full income for the father, even if they remain deductible.
This ruling clarifies the tax implications for property owners who allow family members to use their properties for free, confirming that the imputed income remains subject to tax despite the third party covering maintenance costs.
The tax team reviews your specific situation.
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