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V3104-17 29 November 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Compensation for permanent easements and domain limitations constitutes income from real estate capital

A landowner of rural land used for citrus cultivation sought clarification on the tax treatment of payments received for the establishment of a right of way for a gas pipeline. The DGT has determined that compensation for easements and domain limitations is classified as income from real estate capital if it involves the de-designation of the land, whereas temporary occupation is classified as income from economic activities.

The question raised

Classification of the aforementioned income.

The DGT's ruling

If the permanent easement of way implies the removal of the economic activity by preventing cultivation, the amounts for the easement, the limitation of ownership, and the compensation for loss of use are income from real estate capital. The temporary occupation of the land constitutes income from economic activity as there is no removal of use. Late payment interest, being compensatory in nature, is taxed as capital gains included in the savings tax base.

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