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V1013-21 20 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación de rentas inmobiliarias

Free use of a property by a relative requires imputation of imputed real estate income

A taxpayer inquired whether the free use of a property owned by several siblings for their mother's benefit generates real estate capital income. The DGT ruled that, if the gratuitous nature is proven, no rental income is generated, but the income must be imputed in accordance with Article 85 of the Personal Income Tax Law (LIRPF).

The question raised

Taxation of the operation under Personal Income Tax.

The DGT's ruling

If it is proven that the transfer of the real estate is free of charge, the owners do not obtain returns on real estate capital from the transfer. However, as it concerns urban real estate that does not generate capital returns, the holders must carry out the imputation of real estate income pursuant to Article 85 of the Personal Income Tax Law. This imputation shall be applied in the proportion corresponding to each owner regarding the real estate that does not constitute their habitual residence.

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