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V1694-21 2 June 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

CAP subsidies are taxed as income from economic activities and leases as real estate capital income

A taxpayer asks how to tax CAP after ceasing their agricultural activity and how to declare new income from farm leases. The DGT determines that CAP is income from economic activity and leases are real estate capital income.

The question raised

Question posed 1st Taxation of the amount received from the CAP.

The DGT's ruling

The CAP subsidy is classified as income from economic activities and, being current, is imputed in the period of the final concession resolution. If the cash basis is chosen, it is imputed when collected. On the other hand, income from the lease of rural estates is taxed as real estate capital income.

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