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V1525-22 27 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de bienes

Rental income from a community of property is taxed as income from real estate capital if economic activity requirements are not met

A taxpayer inquired about how to declare rental income from properties owned by a community of property and a proportional terrace. The DGT ruled that this income is attributed to the individual members and taxed according to its source.

The question raised

Inclusion of these earnings in the income tax return.

The DGT's ruling

Communities of property are not taxpayers of Personal Income Tax; instead, income is attributed to their members, with each individual taxing according to the source from which it arises. If there is not at least one employee with a labor contract and full-time working hours for the leasing activity, the income from the real estate and the terrace shall be considered income from real estate capital.

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