Back to index
V2821-20 17 September 2020 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IS · actividad económica

Property leasing retains status as an economic activity if employment contract and full-time hours are maintained

The applicant inquired whether property leasing ceases to be an economic activity if the employee in charge enters active retirement. The DGT ruled that if the worker maintains their employment contract and full-time working hours, the requirements continue to be met.

The question raised

1) Whether the real estate leasing activity carried out by the consulting company would continue to be considered an economic activity for Corporate Income Tax purposes if the worker hired for its management were to enter a state of active retirement.

The DGT's ruling

For the leasing of real estate to constitute an economic activity for Corporate Income Tax and Personal Income Tax purposes, it is required to employ at least one person under a full-time employment contract. The fact that the employee receives a retirement pension compatible with work does not alter this condition, provided that the employment contract and full-time working hours are maintained.

Book your free first meeting