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Practical Income Manual 2021.

Full returns

Leasing of real estate or constitution or transfer of rights or powers of use or enjoyment thereof

Regulations: Art. 22.2 Law Personal Income Tax

The amounts that the acquirer or assignee of the rights or powers of use or enjoyment constituted over the real estate or, where applicable, those that the tenant or subtenant of such properties must satisfy, constitute full returns on real estate capital. .

In addition, the amounts received or that should be received due to the remaining assets transferred with the property must be included among the income from real estate capital, such as, for example, furniture and fixtures, excluding the Tax. on Added Value (VAT) or, where applicable, the Canary Islands General Indirect Tax (IGIC).

COVID-19: As a consequence of the economic and health crisis derived from the COVID-19 epidemic, to calculate the net return on real estate capital, it must be taken into account that changes in the amount set as the rental price (whatever the amount of the reduction ), determine that the full return on real estate capital corresponding to the periods affected is that corresponding to the new amounts agreed upon by the parties.

Furthermore, in cases in which the deferral of rental payments is agreed, it will not be appropriate to reflect a return on real estate capital in the months in which said payment has been deferred since the payment of the rent has been deferred (the imputation of income because it is not payable), in application of the provisions of article 14.1.a) of the Personal Income Tax Law, which provides that the income from work and capital will be attributed to the tax period in which they are payable due to their percipient.

The case is different in which the landlord does not agree to the modification or reduction of the amount set as the rental price (regardless of the amount of the reduction) nor does he agree to the deferral of its payment, resulting in non-payment of the rental income at his discretion. expiration. In that case, the amounts corresponding to the lease of the property must be attributed as full return on real estate capital, even if they have not been received.

Sublease or transfer

In the case of subletting or transfer, the owner or usufructuary of the property must compute as full income from the real estate capital the amounts received as participation in the price of such operations.

The amounts received by the lessee in the case of transfer or assignment of leasing rights are considered capital gains, but those received in the case of subletting are returns on movable capital.