Return to the objective estimation method after ceasing an incompatible activity

The Dirección General de Tributos (DGT) has issued a relevant criterion for taxpayers carrying out economic activities under the objective estimation regime in Personal Income Tax (IRPF). The central issue revolves around the possibility of recovering this calculation method once the activity that generated an incompatibility with direct estimation has ceased.

What the DGT has resolved

The body has specified that incompatibility with direct estimation entails exclusion from the objective estimation method. This exclusion applies with effect from the beginning of the year immediately following the one in which the incompatibility situation occurs and has a minimum temporal effect of three years.

Nonetheless, the resolution establishes a clear roadmap for returning to the regime: if the incompatible activity ceases in a given fiscal year, for example in 2026, the taxpayer may apply the objective estimation method again in the following fiscal year, in this case 2027. To achieve this, it is an indispensable condition that in the year prior to the return (2026), all necessary requirements for its application are met.

What it means for you

This criterion directly affects natural persons operating under the objective estimation regime who, due to the development of other economic activities, are forced to transition toward direct estimation. The main impact is predictability regarding the periods of stay in the direct estimation regime.

If you find yourself in this situation, you must consider that the exclusion is not permanent, but it is subject to a three-year grace period after losing the status of a taxable person under the objective estimation regime. The key lies in the cessation date of the incompatible activity and in meeting the requirements in the fiscal year immediately preceding the one in which you wish to resume the objective method.

What should be done

It is fundamental to strictly monitor the cessation dates of activities that generate incompatibility. To ensure the return to the objective estimation regime in the desired year, it must be verified that the requirements demanded by current regulations, according to Royal Decree 439/2007, are met in the previous fiscal year.

Given that the application of this regime depends on meeting specific conditions and managing exclusion timelines, it is recommended to assess each particular situation to determine the exact fiscal year in which objective estimation can be resumed.