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V1221-22 31 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Classification of residential or non-residential leases depends on the primary use of the property

A query was raised regarding whether the rental of a commercial premises used as a residence should be taxed as a residential or non-residential lease. The DGT indicates that the classification depends on whether the primary purpose is to satisfy the tenant's permanent housing needs.

The question raised

Determination of whether the lease is for residential use or non-residential use in order to determine its taxation under Personal Income Tax.

The DGT's ruling

If the lease does not constitute an economic activity, it constitutes income from real estate capital. It is considered a residential lease when it pertains to a building whose primary purpose is to satisfy the permanent housing needs of the lessee. The determination of whether these requirements are met is a question of fact that must be substantiated with valid means of proof.

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