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V0490-22 10 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · arrendamiento de negocio

Leasing of rural land as an isolated asset is not subject to IRPF withholding

A taxpayer asks whether renting rural land to a company for truck parking incurs IRPF withholding. The DGT explains that withholding depends on whether the lease constitutes a business activity or an isolated asset.

The question raised

It requests to know whether the income from said lease is subject to withholding in the Personal Income Tax and, if applicable, at what rate.

The DGT's ruling

If the contract is a business lease, where an economic unit with its own life is transferred, it shall be subject to a 19% withholding tax. However, if the rural land is leased as an isolated patrimonial asset, the income shall not be subject to withholding, regardless of whether it is classified as economic activities or real estate capital, as it does not appear in the list provided in Article 75 of the RIRPF.

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