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V0291-21 18 February 2021 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IRPF · actividad económica

Renting property is not an economic activity without a full-time employee

The DGT states that property rental is not an economic activity if no full-time employee with a labour contract is employed, thus preventing access to the special contribution regime.

The question raised

Whether the interpretation made regarding the consideration of economic activity in the leasing of real estate by the individual petitioners is correct.

The DGT's ruling

The leasing of real estate is considered an economic activity only if at least one employee is used under a full-time employment contract. For the contribution of real estate to a company to qualify for the special regime of the LIS, the assets must be assigned to an economic activity and must have been so for at least three years. If the employee requirement is not met, the transaction cannot apply said tax regime.

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