Skip to content
Back to index
V1879-21 15 June 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Expenses paid by a relative in a property lease are treated as full income from real estate capital

A property owner leases a commercial premises to his daughter, who takes over the property expenses that would normally be the father's responsibility. The DGT rules that this amount of expenses constitutes full income for the father, even if it remains deductible.

The question raised

Taxation under Personal Income Tax.

The DGT's ruling

The amount of expenses assumed by the assignee, for which the obligation to pay lies with the assignor, is computed as gross income from real estate capital for the assignor. Such amounts are deductible as expenses to the extent that they comply with legal requirements. In the presence of a kinship relationship, the total net income may not be lower than the minimum income established by law.

Book your free first meeting