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V2048-18 11 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de propietarios

No obligation to file Income Tax return if total income from various sources (including real estate) is below €1,000 per year

A query was raised regarding whether a co-owner in a community of property owners must file an Income Tax return for income distributed from the rental of a common area. The Directorate General for Taxes (DGT) ruled that such income is attributed to each co-owner according to their share, and the obligation to file depends on the income thresholds established by law.

The question raised

Obligation to file an IRPF tax return due to the distribution of income obtained from leasing to each co-owner based on their participation coefficient.

The DGT's ruling

Income from the leasing of common elements of a community of owners is attributed to each co-owner according to their degree of participation. If this distribution is the sole source of income, there is no obligation to file a tax return if the gross yields are less than 1,000 euros per year. If other capital yields or economic activities exist, the joint limit of 1,000 euros applies for the exemption from filing.

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