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V1531-19 24 June 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Holiday rentals: capital income or business activity depending on services provided

A query was raised regarding the taxation of holiday rentals and the imputation of income from the free use of a property. The DGT clarifies that the classification of income depends on whether hotel-like services are offered or staff are employed, and that the owner of a property provided free of charge must impute real estate income.

The question raised

Taxation of leasing in Personal Income Tax, as well as the taxation of the property owner for the gratuitous assignment of the use of the property to the applicant.

The DGT's ruling

Income from holiday rentals shall be considered income from real estate capital if no additional services or staff are employed. If hospitality services (cleaning, restaurant, etc.) are provided or if at least one person is employed under a full-time contract, they shall be considered income from economic activities. In the case of gratuitous assignment, the owner must impute real estate income based on the cadastral value.

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