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V2819-18 26 October 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subarrendamiento

Classification of premises subletting depends on the organisation of production means and human resources

A query was raised regarding whether subletting premises equipped for events constitutes an economic activity or income from movable capital. The DGT ruled that the classification depends on whether the individual organises material or human resources on their own account to provide the service.

The question raised

Classification of sublease for the purposes of Personal Income Tax.

The DGT's ruling

Sublease income shall be classified as income from economic activities if there is organization on one's own account of means of production and human resources, or one of the two, to intervene in the production or distribution of goods or services. If such organization of means does not occur, the income shall be classified as income from movable capital pursuant to Article 25.4 c) of the Personal Income Tax Law. The existence of this organization is a question of fact that must be substantiated by means of evidence.

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