Housing rental companies must hire at least one full-time employee

The tax treatment of companies dedicated to the leasing of real estate for residential use has strict requirements to access specific benefits. The Dirección General de Tributos (DGT) has clarified the necessary elements for this activity to be effectively considered an economic activity under Corporate Tax regulations.

What the DGT has ruled

The binding ruling establishes that, for the rental of housing to be qualified as an economic activity according to Article 5.1 of Law 27/2014, it is essential that there is an organization of production means and human resources. Specifically, the DGT determines that it is required to hire at least one person with a full-time employment contract to remunerate the activity.

This personnel requirement must meet the following conditions:

• The contract must be of an employment nature in accordance with current regulations.
• The working day must be full-time.
• The hiring must be real and effective for the management of the activity.

The resolution clarifies that the hired person may be a relative of the owner, provided that the employment relationship is authentic and the mentioned working day and remuneration criteria are met.

What this means for you

If your company manages properties intended for residential rental and wishes to apply the special regime provided for in Corporate Tax, mere ownership and rental of the assets is not enough. The absence of a personnel structure that includes at least one full-time worker prevents the activity from being considered economic, which leads to the impossibility of opting for said tax regime.

What should be done

It is necessary to verify whether your company's organizational structure complies with the organization of human resources required by the Administration. In the event that the management of the properties is carried out without personnel hired under these conditions, the company will not be able to apply the special housing rental regime. It is recommended to assess the cost structure and the reality of the employment relationships to ensure compliance with the requirements of the Corporate Tax Law.