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V1823-14 9 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comodato

Owners of properties provided free of charge must impute imputed real estate income for Personal Income Tax purposes

A query was raised regarding whether an individual who provides an urban property free of charge (loan for use) must pay tax on it. The Directorate General for Tax (DGT) responds that, even in the absence of real estate capital returns, there is an obligation to impute real estate income.

The question raised

It is asked whether the lender must impute real estate income.

The DGT's ruling

If the transfer of an urban property is carried out free of charge and it is not assigned to an economic activity nor generates income from real estate capital, the lender must carry out the imputation of real estate income. Said income is calculated by applying the corresponding percentage to the cadastral value of the property, as established in Article 85.1 of the Personal Income Tax Law.

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