1. Use of housing
The rule for assessing remuneration in kind derived from the use of housing is determined depending on whether or not the housing is owned by the payer:
a. If the home used is owned by the payer
The following cases must be distinguished:
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In general, the valuation will be carried out for the amount resulting from applying the percentage of 10 per 100 on the cadastral value of the home
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In the case of properties located in municipalities in which the cadastral values have been reviewed or modified, or determined through a general collective valuation procedure, and have come into force in the tax period or within the ten tax periods above, the applicable percentage on the cadastral value will be 5 per 100 .
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In the event that on the date of accrual of the Personal Income Tax the properties lacked a cadastral value or this had not been notified to the owner, the percentage will be 5 per 100 and will be applied to 50 by 100 of the largest of the following values: the one verified by the Administration for the purposes of other taxes or the price, consideration or value of the acquisition.
Limit: The valuation resulting from the remuneration in kind corresponding to the use of housing owned by the payer, may not exceed 10 percent of the remaining compensation for the work .
b. If the home used is not owned by the payer
In this case, the remuneration in kind is determined by the cost for the payer of the home, including the taxes levied on the operation, without this valuation being able to be lower than what would have corresponded The previous rule provided for homes owned by the payer has been applied (10 or 5 percent of the cadastral value of the home with a limit of 10 percent of the remaining compensation for the work).
| Housing situation | Rules of assessment | |||
|---|---|---|---|---|
| Casuistry | Calculation basis | Percentage to apply | Limit | |
| If it is owned by the company | Unrevised cadastral value in the tax period or in the previous 10 tax periods | cadastral value | 10% |
The tax valuation may not exceed 10% of the remaining compensation for the work. |
| Revised cadastral value in the tax period or in the previous 10 tax periods | cadastral value | 5% | ||
| Lacks cadastral value or has not been notified | 50% of the highest value between:
|
5% | ||
| If it is leased by the company | The greatest of:
|
|||
Note to table :
In any case, the non-passed-on account income must be added to the corresponding tax valuation in order to determine the full performance of the work.
Example 1: housing owned by the payer
In fiscal year 2021, Mr. APG, single, has received a full salary of 45,000 euros, residing in a new home, owned by the company, whose cadastral value, which was subject to review in 2013, amounts to 80,000 euros.
How should this remuneration be valued, if the interim payments made by the company in fiscal year 2021 for said remuneration in kind, which have not been passed on to the worker, have amounted to 928 euros?
Solution:
Full salary = 45,000.00
Remuneration in kind : (Result of adding to the tax valuation of the remuneration in kind for the use of housing the payments on account made by the company): 4,928.00
- Tax valuation for housing use (5% x 80,000) = 4,000.00
- Maximum tax valuation limit (10% x 45,000) = 4,500.00
- Prevailing tax valuation = 4,000.00
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Payments on account = 928.00
Note: Since the payments on account have not been passed on to the worker, they must be added to the tax valuation in order to determine the full performance of the work .
- Full amount (4,000+ 928) = 4,928.00
Total Comprehensive Income from work: 45,000 + 4,928.00 = 49,928.00
Example 2: housing not owned by the payer
Don RJ He receives a full annual salary of 33,000 euros. In addition, he receives remuneration in kind corresponding to the use of a home rented by his company where he works and for which he pays a rent amounting to 600 euros per month.
The rented home has a cadastral value of 120,000 euros, which was subject to review in 2013.
How should this remuneration be valued, if the payments on account made by the company in fiscal year 2021 for said remuneration in kind, which have not been passed on to the worker, have amounted to 1,385 euros?
Solution:
Full salary = 33,000.00
Remuneration in kind : (Result of adding to the tax valuation of the remuneration in kind for the use of housing the payments on account made by the company) = 8,585.00
- Cost for the payer (600 x 12) = 7,200.00
- Tax valuation in the case of company-owned housing (5% x 120,000), with a maximum tax valuation limit (10% x 33,000 = 3,300) = 3,300.00
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Prevailing tax valuation = 7,200.00
Note: The cost for the payer prevails as said valuation is higher than what would have corresponded if the valuation rule had been applied for the use of homes owned by the payer.
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Payments on account = 1,385.00
Note: Since the payments on account have not been passed on to the worker, they must be added to the tax valuation in order to determine the full performance of the work.
- Full amount (7,200+1,385) = 8,585.00
Total Comprehensive Income from work: 33,000+8,585 = 41,585.00