Skip to content
Back to index
V0254-22 14 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital mobiliario

Income from subletting a warehouse may be classified as investment income or business activity

A taxpayer has requested clarification on how to classify income derived from an industrial warehouse they intend to acquire via financial leasing for the purpose of subletting. The Directorate General of Taxes (DGT) indicates that the classification depends on whether there is an organisation of production means and human resources.

The question raised

Classification of income received from the rental of the warehouse for Personal Income Tax purposes.

The DGT's ruling

If the sublease does not constitute an economic activity, the income is classified as income from movable capital. For it to be an economic activity, the taxpayer must organize production means and human resources on their own account. In the case of financial leasing, only interest is deductible, not the amortization of the lease right nor the recovery of the cost. Following the purchase option, the transfer of the warehouse will generate a capital gain or loss.

Book your free first meeting