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Practical manual for Income Tax 2021.

Concept and requirements of the imputation of real estate income

Subject

The income considered imputed from real estate is that which the taxpayer must include in his tax base for being the owner or holder of a real right of enjoyment over real estate that meets the requirements listed below.

It also generates imputed real estate income from the ownership of a real right of time-share use over urban real estate, in the terms that are also discussed below.

In both cases, the properties must be that do not generate capital gains or are not affected by economic activities .

Note: The granting of the right to use parking spaces for residents does not generate the imputation of real estate income, since said concession does not constitute a real right.

Requirements for the imputation of real estate income

The imputation of real estate income is conditional on the properties from which said presumed income is derived meeting the following requirements:

  • That it concerns urban real estate qualified as such in article 7 of the consolidated text of the Real Estate Cadastre Law, approved by Royal Legislative Decree 1/2004, of March 5 ( BOE of the 8th), not affected by economic activities.

  • That it is rustic properties with buildings that are not essential for the development of agricultural, livestock or forestry operations, not affected by economic activities.

    The concept of assets affected economic activities is discussed in Chapter .

  • That do not generate capital returns . Capital gains may be derived from the leasing of real estate, businesses or mines or from the creation or transfer of rights or powers of use or enjoyment over real estate.

    Returns on capital are discussed in Chapter 4 (Returns on real estate capital) and Chapter 5 (Returns on movable capital) of this Manual.

  • That they do not constitute the habitual residence of the taxpayer . For these purposes, parking spaces acquired together with the property, up to a maximum of two, are considered to be part of the taxpayer's habitual residence.

  • That it is not undeveloped land, properties under construction or properties that, for urban planning reasons, are not susceptible to use .