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V3039-20 8 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · subarrendamiento

Subletting income from a warehouse is subject to IRPF withholding if the payer is a withholding agent

An individual has enquired whether income received from granting the use of a warehouse to companies (subletting) and the reimbursement of utilities is subject to IRPF withholding. The DGT has ruled that such income is indeed subject to withholding, provided that the payer is a withholding agent and no legal exceptions apply.

The question raised

Whether the income received by the applicant from said companies is subject to withholding under Personal Income Tax.

The DGT's ruling

Income from the subletting of urban real estate is subject to withholding tax under Personal Income Tax (IRPF), regardless of its classification. The applicable rate is 19%, which is applied to all concepts paid, excluding VAT. This withholding obligation arises when the payer is a legal entity or a taxpayer carrying out economic activities, unless the exceptions set forth in article 75.3.g) of the RIRPF are met.

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