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V2422-24 26 November 2024 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · actividad económica

Wealth Tax exemption requires separation of management duties and lease administration

A taxpayer has queried whether their entity qualifies as a non-wealth entity to benefit from Wealth Tax exemptions. The DGT assessed the requirements regarding economic activity, ownership, and management functions, ruling that management duties cannot be combined with the administration of leases under a full-time employment contract.

The question raised

Whether entity A can hold the status of a patrimonial company.

The DGT's ruling

For the leasing of real estate to constitute an economic activity, it must have at least one employee under a full-time employment contract. The exemption requires that the kinship group performs management functions, receiving more than 50% of its income. However, these management functions and the management of the leasing activity cannot fall upon the same person, as a full-time employment contract is incompatible with the performance of other functions.

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