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V2920-20 29 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · usufructo

Rental income from real estate belongs to the usufructuary

A query was raised regarding which party should be taxed on rental income from properties where the taxpayer holds the usufruct and their children hold the bare ownership. The DGT ruled that the income belongs to the usufructuary, as they are the holder of the right from which the income derives.

The question raised

To whom the income derived from real estate should be imputed.

The DGT's ruling

Income from real estate capital is attributed to taxpayers who are holders of the assets or rights from which it derives, according to the rules of legal ownership. The usufructuary is entitled to receive all civil fruits of the assets under usufruct. Therefore, income derived from the leasing of real estate corresponds to the usufructuary, who is the sole holder of said right.

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