7,3,6,2. Gross income (Real estate capital)

Lease or constitution or transfer of rights or powers of use or enjoyment over real estate (art. 22 Law)

The following shall be considered as full income from the ownership of rural and urban real estate or property rights that fall on them, all those derived from the leasing or the constitution or transfer of rights or powers of use or enjoyment over them, whatever their name or nature.

The total income will be calculated as the amount that the tenant, sub-tenant, purchaser or assignee of the right of use must pay for all concepts, including, where applicable, the amount corresponding to all those assets transferred with the property and excluding the Value Added Tax, or where applicable, the Canary Islands General Indirect Tax.

Owner's or usufructuary's participation in the price of the sublease or transfer

In the case of sublease or transfer, the owner or usufructuary of the property must compute as full income the amounts received as participation in the price of such operations.

Performance in case of kinship (art. 24 Law)

When the purchaser, assignee, lessee or sub-lessee of the real estate or the real right that falls on it, is the spouse or a relative of the taxpayer, including in-laws, up to the third degree inclusive (parents-children; grandparents-grandchildren; siblings; uncles-nephews), the total net income may not be less than that resulting from applying the rules in section "Imputation of real estate income".

Estimated income (art. 40 Law)

The provision of goods or rights that may generate capital gains shall be presumed to be remunerated, unless proven otherwise (art. 6.5 Law).

The valuation of the estimated income will be carried out at the normal market value. Normal market value shall be understood as the consideration that independent subjects would agree upon, unless proven otherwise.

Related party transactions (art.41 Law)

In general, in Personal Income Tax, the rules for the valuation of related-party transactions apply in accordance with the terms set out in Article 16 of the Corporate Income Tax Law.