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V2601-23 27 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital

Rental income from a property must be attributed to the owners according to legal title

A taxpayer inquired whether they could personally be taxed on rental income from a property owned by their parents by acting as the lessor via a power of attorney. The Directorate General for Taxes (DGT) ruled that rental income must be attributed to the legal owners of the property, namely the parents.

The question raised

Taxation of the transaction in the Personal Income Tax.

The DGT's ruling

Income from capital derived from leasing is attributed to taxpayers who are holders of the assets according to the rules of legal ownership. Therefore, the income must be attributed to the owners of the property, regardless of whether the amount obtained is transferred free of charge to another person.

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