1. Use of housing

The rule for assessing remuneration in kind derived from the use of housing is determined based on whether or not the housing is owned by the payer:

a. If the property used is owned by the payer

The following cases must be distinguished:

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
In the case of properties located in municipalities in which the cadastral values have been revised or modified, or determined through a general collective valuation procedure, and have come into force in the tax period or within the period of the ten previous tax periods, the percentage applicable to the cadastral value will be 5 per 100 .
In the event that on the date of accrual of IRPF the properties had no cadastral value or this had not been notified to the owner, the percentage will be 5 per 100 and will be applied to 50 per 100 of the highest 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 resulting valuation of the remuneration in kind corresponding to the use of housing owned by the payer, may not exceed 10% of the remaining compensation for work .

b. If the dwelling used is not owned by the payer

In this case, the remuneration in kind is determined by the cost to the payer of the dwelling, including any taxes levied on the transaction, without this valuation being able to be lower than that which would have corresponded if the previous rule provided for dwellings owned by the payer had been applied (10 or 5% of the cadastral value of the dwelling with a limit of 10% of the remaining work compensation).

**Use of housing by the employee**
Housing situation	Rules of assessment
Housing situation	Casuistry	Calculation basis	Percentage to apply	Limit
If it is owned by the company	VC not reviewed in the tax period or the previous 10 tax periods	VC	10%	The tax assessment may not exceed 10% of the remaining work compensation.
	VC reviewed in the tax period or the previous 10 tax periods	VC	5%
	Lacks VC or has not been reported	50% of the highest value between: Cost price Value verified by the Administration	5%
If it is leased by the company	The eldest of: Cost to the payer + inherent taxes Value resulting from applying the rules for owned housing (see previous rule)

Note to table :

Abbreviations used: VC, cadastral value.

In any case, the unreperformed income on account must be added to the corresponding tax assessment in order to determine the total income from work.

Example 1: housing owned by the payer

In the 2023 financial year, Mr APG, who is single, received a full salary of 45,000 euros and lives in a new home owned by the company, the cadastral value of which, which was subject to review in 2014, amounts to 80,000 euros.

How should this remuneration be valued, if the payments on account made by the company in the 2023 financial year for said remuneration in kind, which have not been passed on to the employee, have amounted to 928 euros?

Solution:

Full salary = 45,000

Compensation in kind : (Result of adding to the tax assessment of the remuneration in kind for the use of housing the payments on account made by the company): 4.928

Tax assessment for housing use (5% x 80,000) = 4,000
Maximum tax valuation limit (10% x 45,000) = 4,500
Prevailing tax valuation = 4,000
Income on account = 928

Note: Since the income on account has not been passed on to the worker, it must be added to the tax assessment in order to determine the total income from work .
Full amount (4,000 + 928) = 4,928

Total Gross Income from Work: 45,000 + 4,928 = 49,928

Example 2: housing not owned by the payer

Mr. RJ receives a full annual salary of 33,000 euros. In addition, he receives compensation in kind corresponding to the use of a home rented by his company where he works and for which he pays a rent of 600 euros per month.

The rented property has a cadastral value of 120,000 euros, which was subject to review in 2014.

Solution:

Full salary = 33,000

Compensation in kind : (Result of adding to the tax assessment of the remuneration in kind for the use of housing the income on account made by the company) = 8,585

Cost to the payer (600 x 12) = 7,200
Tax valuation in case of company-owned housing (5% x 120,000), with a maximum tax valuation limit (10% x 33,000 = 3,300) = 3,300
Prevailing tax valuation = 7,200

Note: The cost to the payer prevails as the valuation is higher than what would have been applicable if the valuation rule had been applied for the use of homes owned by the payer.
Income on account = 1,385

Note: Since the income on account has not been passed on to the worker, it must be added to the tax assessment in order to determine the total work performance.
Full amount (7,200+1,385) = 8,585

Total Gross Income from Work: 33,000 + 8,585 = 41,585