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V2923-21 19 November 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de bienes

Co-owners of a joint property undertaking economic activity must make instalment payments

A query was raised regarding whether members of a joint property (comunidad de bienes) dedicated to property leasing must make personal income tax (IRPF) instalment payments. The Directorate General for Taxes (DGT) ruled that, as this constitutes an economic activity, the obligation applies to each co-owner.

The question raised

Whether natural persons who are members of a community of property are obliged to make installment payments for Personal Income Tax.

The DGT's ruling

Communities of property are not taxpayers; instead, income is attributed to their members. If the entity carries out an economic activity, such as the leasing of real estate with at least one full-time employee, the attributed income is of an economic activity nature. Therefore, each member of the community must make the installment payment in proportion to their share in the profit.

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