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V2771-19 9 October 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · actividad económica

Tourist rentals only constitute an economic activity if they employ at least one full-time worker or provide hotel services

A query was raised regarding whether the rental of housing for tourist use always constitutes an economic activity for Personal Income Tax (IRPF) purposes. The Directorate General for Taxes (DGT) ruled that urban leasing regulations are independent of tax classification and that for a rental to be classified as an economic activity, it must involve a minimum structure or the employment of at least one full-time worker.

The question raised

Whether Article One.Two of Royal Decree-Law 7/2019, of March 1, on urgent measures regarding housing and rental, determines that the leasing of housing for tourist use constitutes, in all cases, an economic activity for Personal Income Tax purposes.

The DGT's ruling

The rental of tourist accommodation shall be considered an economic activity only if it involves the provision of hotel industry services or if there is a minimum business structure that includes at least one person under a full-time employment contract. The exclusion of these rentals from the Urban Leasing Act does not determine their classification for Personal Income Tax purposes. The elements that define whether it is an economic activity or income from real estate capital are those established in the Personal Income Tax regulations.

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