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V2739-20 7 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Reduction in rental income determines the new gross return on real estate capital

A married couple under community property regime seeks guidance on how to tax income after agreeing to reduce rents due to the COVID-19 situation. The DGT rules that the gross return shall be based on the newly agreed amounts and explains the treatment of expenses and the enforceability of the rent.

The question raised

Taxation under Personal Income Tax regarding said lease.

The DGT's ruling

The total yield from real estate capital shall correspond to the new amounts agreed upon by the parties following the reduction. Necessary expenses incurred during the affected period may be deducted, applying a 60% reduction if the property is a dwelling. In the event that a deferral of payments is agreed, no yield shall be imputed in the months without collection as the rent is not due, although incurred expenses may still be deducted.

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