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V0991-24 10 May 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo en especie

Loans with below-market interest rates remain benefits in kind even without an employment relationship

A former bank employee inquired whether the financial advantage of her mortgage constitutes a second payer. The DGT ruled that the benefit from the reduced interest rate is considered income in kind from employment and constitutes a second payer.

The question raised

Consideration of the existence of a second payer, with the tax repercussions that this entails, when the individual is no longer an employee of the entity.

The DGT's ruling

Loans with interest rates below the market norm constitute benefits in kind, maintaining this classification even if no employment relationship exists with the entity. The valuation of this benefit must be carried out according to the price offered to the public, deducting ordinary or common discounts. The existence of this benefit and of the unemployment benefit implies having two different payers for Personal Income Tax.

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