Imputation of real estate income: who must pay tax on the use of a legacy?

Determining who must perform the imputation of real estate income in Personal Income Tax (IRPF) is a relevant aspect when the ownership of a property is distributed through legacies with different usage powers.

What the DGT has resolved

The Dirección General de Tributos (DGT) has addressed the question of whether the imputation of income should be attributed to all legatees according to their ownership percentage, or only to those designated for the use and enjoyment of the dwelling. The criterion establishes that the imputation of real estate income corresponds to the holders of the assets or the holders of real rights of enjoyment.

In the analyzed case, since there are legatees with the right to freely use and enjoy the dwelling, the computable income is attributed exclusively to the latter. Consequently, any legatee who only holds a right over the sale value of the property, without usage powers, must not perform the imputation of real estate income in their tax return.

What it means for you

This criterion has a direct impact on natural persons receiving legacies with specific conditions regarding the property. If you are the beneficiary of a legacy that grants you the right of use and enjoyment of a dwelling, but not full ownership or the right to its sale value, the tax responsibility for the imputation of income falls on you.

Conversely, if your participation in the inheritance is limited to a right over the economic value of the asset, without the capacity for effective use, you are exempt from this specific tax obligation in IRPF, in accordance with current regulations.

What you should do

In situations involving inheritances or legacies where ownership is divided between rights of use and rights of value, it is necessary to analyze the legal nature of each right granted. The correct attribution of income depends on the distinction between the ownership of the asset and the ownership of the real rights of enjoyment. It is recommended to assess each particular case to ensure that the imputation of income is carried out in accordance with the legal reality of the testamentary disposition.