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Practical Income Manual 2021.

Minimum computable income in case of relationship

Regulations: Articles 24 and 85 Law Personal Income Tax

When the acquirer, assignee, lessee or sublessee of the real property or the real right that rests on it, is the spouse or a relative of the taxpayer, including related persons, up to the third degree inclusive, the total computable net income may not be less to the amount that would result from the application of the special regime for allocating real estate income to the property or property right in question.

In accordance with said special regime, the minimum total net return may not be less than that resulting from applying:

  • The 2 per 100 to the cadastral value that corresponds to the property in each tax period.

  • The 1.1 per 100 of the cadastral value if they are urban properties whose cadastral values have been reviewed or modified, or determined through a general collective valuation procedure, in accordance with the cadastral regulations, and have come into force in the tax period or within the ten previous tax periods.

  • The percentage of 1.1 per 100 will also be applied in the event that, on the date of accrual of personal income tax (normally December 31), the property has no cadastral value or said value has not been notified to its owner, although said percentage will be applied to 50 percent of the highest of the following values:

    1. Value verified by the Administration for the purposes of other taxes.

    2. The price, consideration or value of the acquisition.

If there are several tenants of the property, this special regime applies to the part of the net income that corresponds to family members who have the legally established degree of relationship.

If the net return corresponding to the lease or transfer of the property, once the previously mentioned reductions have been applied to it, if applicable, is less than the minimum return, this last amount will be recorded in box [0152] of the statement.