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V1120-22 19 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas inmobiliarias

No imputed real estate income if the property is under construction or unfit for use

A taxpayer inquired whether real estate income should be imputed for a self-built property that was denied a first occupation licence. The DGT ruled that imputation is not applicable if the property is under construction or unfit for use due to urban planning restrictions.

The question raised

It is requested to know whether, during 2021, it is appropriate to impute real estate income regarding said dwelling in the Personal Income Tax and the documentation to be submitted for its correct declaration.

The DGT's ruling

No imputed income shall be estimated in the case of properties under construction or when, for urban planning reasons, the property is not capable of use. The regulations do not require a specific document to prove these situations, and any means of proof admitted under Law are acceptable. The taxpayer must prove the causes that make the use of the property impossible, although the assessment of such proof is the responsibility of the Administration's verification bodies.

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