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V2294-18 7 August 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · atribución de rentas

Rental income from common areas is attributed to co-owners based on their shareholding

A query was raised regarding whether income from the lease of a porter's lodge should be distributed among co-owners according to their respective coefficients. The Directorate-General for Tax (DGT) ruled that income is attributed to each individual based on their degree of participation or as stipulated in the bylaws.

The question raised

Obligation to distribute the income obtained from leasing to each member of the community, based on their participation coefficient.

The DGT's ruling

Communities of property are not taxpayers of Personal Income Tax (IRPF); instead, income is attributed to their members. Income from the leasing of common areas constitutes returns on real estate capital. This income shall be attributed to the co-owners according to their degree of participation or as provided in the statutes, regardless of whether the amount is effectively distributed or allocated to another purpose.

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