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V3259-20 30 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

60% rent reduction depends on whether the Council acts as intermediary or landlord

A local Council proposes renovating properties ceded by owners for subsequent rental. The DGT clarifies that the 60% tax reduction only applies if the Council acts merely as an intermediary rather than a direct landlord.

The question raised

How the owner of the dwellings must be taxed under Personal Income Tax for the aforementioned assignment.

The DGT's ruling

If the City Council acts as an intermediary, the owner receives the income from the tenant and may apply the 60% reduction if the requirements are met. If the City Council is the lessor, the income for the owner constitutes income from real estate capital without entitlement to the 60% reduction. Improvement works carried out by the City Council are considered benefits in kind and are imputed when they accrue to the owner.

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