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V0133-26 27 January 2026 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · actividad económica

Property management subcontracts do not guarantee economic activity

The DGT states that economic activity for corporate tax requires at least one employee with a full-time labour contract.

The question raised

Whether, in accordance with the provisions of Article 5.1 of Law 27/2014, of November 27, on Corporate Income Tax, it can be considered that, in this specific case, where the subsidiary entities B1 and B2 outsource the management of real estate leasing, they are carrying out an economic activity.

The DGT's ruling

For the leasing of real estate to constitute an economic activity, the Corporate Income Tax Act requires the employment of at least one person under a labor contract working full-time. The outsourcing of management to third parties could potentially substitute the need for hiring, but the assessment of whether the complexity of management justifies such outsourcing is a question of fact that must be determined by the Administration.

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