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V2662-19 30 September 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Rental income from inherited property is taxed as income from real estate capital

Heirs of an agricultural estate used for a wind farm have enquired about the taxation of the rental income received. The DGT has ruled that, provided it does not constitute an economic activity, such income is classified as income from real estate capital.

The question raised

Tax treatment of said income in the Personal Income Tax (IRPF) of the heirs.

The DGT's ruling

If the lease does not meet the requirements of an economic activity, the income received is characterized as income from real estate capital pursuant to Article 22 of the Personal Income Tax Law (LIRPF). Such income is attributed to the heirs in proportion to their ownership interest in the property.

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