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V3218-18 19 December 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · actividad económica

Leasing of properties is not an economic activity if managed through a service company

A query was raised regarding whether the rental of fourteen properties managed by a specialised company constitutes an economic activity. The DGT ruled that it does not, as the requirement of having at least one employee under a full-time employment contract is not met.

The question raised

Whether the income derived from the leasing of said real estate is considered income from an economic activity.

The DGT's ruling

For the leasing of real estate to constitute an economic activity, it is necessary to employ at least one person under an employment contract on a full-time basis. If management is carried out through a specialized management company or a full-time self-employed professional, it constitutes a service provision contract rather than an employment contract. In this case, the income must be classified as income from real estate capital.

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