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V0962-21 19 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cesión gratuita

Real estate income must be imputed for the free provision of housing to relatives

A taxpayer and his spouse grant the free use of a property owned by their community of property to their in-laws for use as a primary residence. The Directorate General for Taxes (DGT) rules that, even in the absence of actual income from the arrangement, real estate income must be imputed based on the cadastral value.

The question raised

Taxation of the operation under Personal Income Tax.

The DGT's ruling

If it is proven that the transfer of an urban property to a relative is free of charge, no income from real estate capital is generated. Nevertheless, the owners must carry out the imputation of real estate income established in Article 85 of the Personal Income Tax Law. Said income is calculated by applying the corresponding percentage to the cadastral value of the property.

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