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V0124-19 18 January 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Owner of property leased to a relative for holiday rentals must tax as income from real estate capital

A property owner has requested clarification regarding the tax implications of leasing their home to an aunt for use as a holiday rental. The Directorate General for Taxes (DGT) has indicated that the owner will be taxed on income from real estate capital, while the aunt will be taxed on income from movable capital or through business activities, depending on how the rental is managed.

The question raised

Taxation of the transfer of the dwelling for both the consultant and their relative.

The DGT's ruling

The owner of the dwelling shall compute income from real estate capital, unless the requirements to be considered an economic activity are met. The aunt, as the lessee, shall have income from movable capital from the sublease, unless the operation constitutes an economic activity by providing complementary services typical of the hotel industry.

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