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V3133-20 20 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Rental income must be taxed by the owner, even if collection is assigned to a third party

A property owner inquired whether she could freely assign the right to collect rent from her flat to her son. The DGT ruled that income must be attributed to the legal owner of the property and that assigning the collection rights triggers an additional tax.

The question raised

Who should be imputed the amounts paid for rent and the deductible expenses incurred in the lease.

The DGT's ruling

Income from real estate capital is attributed to the taxpayers who are the owners of the assets from which it derives, according to the rules of legal ownership. Therefore, the income is imputed to the owner in proportion to their ownership, regardless of whether the amount is transferred gratuitously to a third party. Furthermore, the transfer of the amount of the income to the son constitutes a taxable event for Inheritance and Gift Tax.

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