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V0743-22 5 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital

Tourist holiday rentals: capital income or business income depending on services provided

A query was raised regarding whether income from tourist holiday rentals should be taxed as capital income or as business income. The DGT ruled that it depends on whether hotel-like services are provided or if a full-time employee is hired.

The question raised

Classification of the income received from said rentals for Personal Income Tax purposes.

The DGT's ruling

Income from the rental of tourist accommodation constitutes returns on real estate capital if services typical of the hotel industry (cleaning, restaurant, etc.) are not provided and no person is employed under a full-time employment contract. If supplemented by hotel services or if at least one full-time employee is engaged, the income shall be classified as income from economic activities.

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