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Bare Owner: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 8 rulings · 2014–2026

Current position

The creation or transfer of rights of use or enjoyment over real estate is classified as income from real estate capital for the bare owner. To calculate the net income, the bare owner may deduct necessary expenses such as interest, repairs, taxes, insurance, and depreciation. The reduction for residential leasing under Article 23.2 of the Personal Income Tax Law (LIRPF) is not applicable, as it involves the creation of a usufruct and not a lease.

The DGT's position remains constant in classifying the creation of usufructs as income from real estate capital for the bare owner. The most recent rulings have specified the list of deductible expenses, such as repairs, taxes, and insurance, for the calculation of net income.

Turning points

  1. V0118-24

    Establishes that the creation of a usufruct over a dwelling is income from real estate capital for the bare owner and excludes the application of the reduction under Article 23.2 LIRPF.

  2. V5275-26

    Expands the list of deductible expenses for the bare owner, specifically including repairs, taxes, and insurance for the calculation of net income.

Analysis based on 8 of 8 rulings with a stated position. Updated 2 October 2026.

Rulings on this topic

8
V1167-26 20 May 2026

Usufruct creation on a property deemed capital income

SG de Impuestos sobre la Renta de las Personas Físicas
rendimientos del capital inmobiliariousufructonudo propietarioamortizacióngastos deducibles LIRPF — Ley 35/2006 del IRPF art. 22.1LIRPF — Ley 35/2006 del IRPF art. 23.2
Affects CompanyExpat · Non-residentIndividual

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