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V2541-18 18 September 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital mobiliario

Income from subletting residential property for tourist use is classified as investment income if no hotel services are provided

A person subletting a property for tourist rentals asks whether they must register for the Business Activities Tax (IAE) and how the income is taxed. The Directorate-General for Tax (DGT) responds that, as no hospitality services are provided, the income constitutes returns on movable capital rather than an economic activity.

The question raised

Whether there is an obligation to register under any heading of the Economic Activities Tax.

The DGT's ruling

If the sublessor does not provide complementary services typical of the hotel industry (such as cleaning or reception), the income is considered returns on movable capital according to the Personal Income Tax Law (LIRPF). In this case, there is no obligation to file form 130 for fractional payments. Regarding the Economic Activities Tax (IAE), the natural person is exempt from the tax but must complete the census registration using form 036 under the heading for non-hotel tourist accommodations.

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