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V2755-20 10 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Prepaid rent is taxed in the period in which it becomes due

A landlord has requested clarification on how the advance collection of residential rent should be taxed for Personal Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) has ruled that, if it does not constitute an economic activity, such payments are imputed as income from real estate capital in the period in which they become due.

The question raised

Taxation of said payment in Personal Income Tax (IRPF).

The DGT's ruling

If the lease does not constitute an economic activity (due to not having at least one full-time employee), the income is considered income from real estate capital. This must be imputed to the tax period in which it becomes due to the recipient. In the absence of a special rule for the accrual of this type of income, the general rule of exigibility applies.

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