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V0100-22 21 January 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · exención de participaciones

Shareholdings in entities subletting property only exempt from Wealth Tax if activity qualifies as economic

The taxpayer asks whether shareholdings in a company that sublets property and manages third-party assets retain their exemption from Wealth Tax. The DGT rules that the exemption depends on the activity being classified as economic under Personal Income Tax (IRPF) rules, which requires the organisation of production means and human resources.

The question raised

First. Regarding the activity of subleasing real estate:

The DGT's ruling

For the leasing of real estate to constitute an economic activity, it is required to employ at least one person under a full-time and exclusive employment contract for said activity. In the case of subleasing and the management of third-party real estate, its classification as an economic activity shall depend on whether there is an independent organization of means of production and human resources for the production or distribution of goods or services. If these infrastructure and organizational requirements are not met, the income from subleasing shall be considered income from movable capital.

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