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V1963-25 16 October 2025 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · actividad económica

Property management subcontracts could qualify as economic activity

The DGT states that while the law requires a full-time employee for property rental, specialised management subcontracting could constitute a valid economic activity on a case-by-case basis.

The DGT's ruling

For the leasing of real estate to constitute an economic activity for Corporate Income Tax purposes, the Corporate Income Tax Act requires the employment of at least one person under a full-time employment contract. Nevertheless, the DGT indicates that the outsourcing of specialized third-party companies to manage a significant real estate portfolio could be an alternative that reflects the economic reality. The assessment of whether the complexity and dimension of the management justify such outsourcing is a question of fact that must be determined by the Administration.

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