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V2970-21 23 November 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de rendimientos

Formation of a community of returns does not generate capital gains or constitute an economic activity without exclusive dedication

Property owners consulted whether creating a community of returns to manage rentals with a shared employee allows for taxation as an economic activity and what the implications are for other taxes. The DGT ruled that it does not qualify as an economic activity as the requirement for exclusive dedication is not met, and no capital gains are generated if ownership does not change.

The question raised

Consultation is made regarding the taxation under Value Added Tax and Personal Income Tax of the aforementioned community of income. Furthermore, consultation is made regarding the latter Tax concerning the imputation of the income obtained to each of the applicants and whether the formation of the community of income would give rise to capital gains or losses.

The DGT's ruling

For a lease to constitute an economic activity, the requirement of employing at least one person under a full-time employment contract for the management of said activity must be met. If the employee manages both individual and community assets, there is no exclusive dedication and the income remains classified as real estate capital income. The formation of a community of income does not generate capital gains or losses if the legal ownership of the properties is not altered. Regarding VAT, there is no supply of goods if the owners continue to personally assume the risk of the activity.

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