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V1173-22 26 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación de rentas inmobiliarias

Real estate income must be imputed for non-primary residence properties held abroad

A taxpayer has enquired whether they must impute real estate income for a property located abroad. The Directorate General for Taxes (DGT) has ruled that this is required if the property is not their primary residence and does not generate capital income.

The question raised

Whether the imputation of real estate income is appropriate for a property owned by the taxpayer located abroad.

The DGT's ruling

For urban or rural properties with constructions not indispensable for operations, which are neither a habitual residence nor generate capital yields, the imputed income is 2 percent of the cadastral value (or 1.1 percent in municipalities with collective valuation). As it is a property abroad without a cadastral value, the income shall be 1.1 percent of 50 percent of the value to be computed for Wealth Tax.

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