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V0200-19 30 January 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividad económica

Leasing of co-owned properties constitutes economic activity only if the community of property meets specific requirements

A taxpayer inquired whether the rental of their properties (owned individually, in undivided shares, or through communities of property) qualifies as income from economic activities. The DGT ruled that this classification depends on whether the requirement of employing at least one full-time employee is met for each case separately.

The question raised

Whether the income derived from the leasing of all the aforementioned real estate would be classified as income from an economic activity.

The DGT's ruling

The activity of leasing real estate constitutes an economic activity only if at least one employee is utilized under a full-time employment contract. This condition must be met independently for the individual activity of the owner and for each of the communities of property in which they participate. It is not possible to assign co-owned assets to the individual activity nor vice versa. If the community of property does not have its own employee, the attributed income shall be classified as income from real estate capital.

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