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V1036-22 9 May 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · exención

Properties leased at market rates by a company may qualify as business assets for Wealth Tax exemption

The taxpayer inquired whether properties leased by a subsidiary company to her and her family could be considered assets used for business purposes to qualify for Wealth Tax exemption. The DGT ruled that if the lease is conducted at market rates and is classified as an economic activity, the properties may be treated as business assets.

The question raised

Whether the properties leased by company X to the applicant and members of their family may be considered assets assigned to the activity for the purposes of the scope and access to the exemption in Wealth Tax.

The DGT's ruling

For the leasing of real estate to constitute an economic activity, at least one employee with a labor contract and full-time working hours must be utilized. If this requirement is met and the properties are leased at market value, they are considered necessary elements to obtain income and are, therefore, assigned to the activity. However, assets intended exclusively for personal use or transferred to related parties at a price below market value are excluded from such assignment.

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