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A taxpayer inquired about the tax treatment when an ex-spouse uses the family home and pays their share of the mortgage as compensation. The Directorate General of Taxes (DGT) ruled that such payment constitutes income from real estate capital. Furthermore, if the property is provided free of charge after the mortgage is repaid, the imputation of real estate income rules would apply.
This ruling clarifies the tax classification of mortgage contributions made by former spouses in exchange for property use, distinguishing between compensatory payments and free use of property.
The tax team reviews your specific situation.
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