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V3142-20 20 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de bienes

Income from a community of property engaged in economic activity is classified as income from economic activities

A query was raised regarding the classification of income attributed to members of a community of property engaged in commercial activity. The DGT ruled that such income retains its nature as income from economic activities for each member of the community.

The question raised

Classification of the income attributed to the co-owners by the community of property.

The DGT's ruling

Communities of property are not taxpayers of Personal Income Tax (IRPF), but rather groupings that attribute income to their members. If the entity organizes its own means of production or human resources, the attributed income maintains its character as income from economic activities. The hiring of third parties for management or execution tasks does not prevent the co-owners from exercising the organizational functions inherent to their status as entrepreneurs. Income is attributed according to the applicable agreements or, failing that, in equal shares.

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