Siblings may apply the objective estimation method individually

The application of the objective estimation method in Personal Income Tax (IRPF) depends on meeting certain income limits. A recurring question in the agricultural and livestock sectors is whether, when several family members carry out economic activities, their incomes must be summed to verify if they exceed the thresholds permitted for this regime.

What the DGT has resolved

The Directorate General of Taxes (DGT) has determined that the income volume magnitude is evaluated independently for each taxpayer. The criterion establishes that incomes are not computed jointly when the subjects are siblings.

The body clarifies that joint computation would only occur if identical or similar activities are carried out with common management and the participation of spouses, descendants, or ascendants. In the specific case of siblings, as they are not included in that scenario of direct family grouping for the summation of magnitudes, each maintains their autonomy to evaluate their eligibility for the objective estimation regime.

Furthermore, the resolution points out that if a community of property carries out a different activity, the method applied by the entity does not affect the method that the individual members of the community must apply individually.

What this means for you

If you are a natural person carrying out agricultural, livestock, or mussel production in rafts activities, this criterion provides you with greater predictability. If you work alongside a sibling, you do not have to add your income to theirs to know if you can continue paying taxes under the objective estimation method; each must analyze their own income figure separately.

This prevents the growth of a family member's activity from blocking the possibility of the other maintaining a simpler and more predictable tax regime, provided that the latter meets the legal limits individually.

What should be done

It is necessary to perform rigorous monitoring of the annual gross income of each activity independently. Since the regulations are based on Royal Decree 439/2007 and Order HAC/1425/2025, the correct segregation of income is fundamental to avoid errors in the IRPF declaration and possible requests from the Administration.