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V2365-21 20 August 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Expenses assumed by a transferee in exchange for the use of a property count as income from real estate capital

A query was raised regarding whether granting the use of a property to a family member in exchange for them assuming property expenses generates taxable income. The DGT ruled that the amount of such expenses constitutes full income for the owners and is deductible for them.

The question raised

Taxation under the Personal Income Tax.

The DGT's ruling

The amount of expenses assumed by the assignee, for which the co-owners are responsible for payment, is computed as gross income from real estate capital for the assignors. These expenses are deductible for the assignors if they meet the requirements of the Personal Income Tax Law (LIRPF). Due to the existence of a kinship relationship, the calculation of the minimum income established in Article 24 of the LIRPF must be applied.

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