Skip to content
Back to index
V3138-21 17 December 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de bienes

Joint owners in a community of property may apply the 60% tax reduction for residential leasing

A query was raised regarding whether members of a community of property can apply the residential leasing tax reduction under Article 23.2 of the Personal Income Tax Act (LIRPF). The Directorate General of Taxes (DGT) ruled that, even if the income is not derived from an economic activity, each joint owner may apply said reduction to their respective share of the income.

The question raised

Application of the reduction for residential leasing provided for in Article 23.2 of the Personal Income Tax Law by the members of the community of property.

The DGT's ruling

Communities of property are not taxpayers of Personal Income Tax (IRPF), but rather attribute income to their members. Although rental income without employees constitutes income from real estate capital, the members of the entity may apply the 60% reduction provided for in Article 23.2 of the Personal Income Tax Law (LIRPF) to the net income attributed to them.

Book your free first meeting