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V1563-22 30 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación de rentas inmobiliarias

Imputed real estate income applies to the free use of urban properties not used for economic activity

A woman acting as the legal representative for her husband due to judicial incapacity asks whether he must declare income for granting free use of properties. The DGT rules that, even in the absence of rent, the income must be imputed as per Article 85 of the Personal Income Tax Law (LIRPF).

The question raised

Appropriateness of the imputation of real estate income for the husband of the applicant in the cited operation for Personal Income Tax purposes, as well as the manner of fulfilling the corresponding tax obligations before the State Tax Administration Agency.

The DGT's ruling

If the transfer of urban real estate is free of charge and is not used for economic activities, the owner must impute real estate income pursuant to Article 85 of the Personal Income Tax Law. This income is calculated by applying 2 percent (or 1.1 percent in municipalities with a recent collective valuation) to the cadastral value. The gratuitous nature of the transfer must be proven by the taxpayer through means of evidence admitted under Law.

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