Temporary imputation of real estate capital returns

General rule

Regulations: Art. 14.1 a) Law Income Tax

As a general rule, real estate capital gains, both income and expenses, must be attributed to the tax period in which they are payable by their recipient, regardless of when the income was collected and the expenses were paid.

Special rules

1. Estimated returns on real estate capital

   Regulations: Art. 14.2 f) Law Income Tax

   Estimated income from real estate capital and income derived from related-party transactions will be allocated to the tax period in which they are deemed to have occurred . This fiscal year will be the one in which the services of goods or rights capable of generating income of this nature have been carried out.

2. Yields pending court ruling

   Regulations: Art. 14.2 a) Law Income Tax

   Notwithstanding the foregoing, when all or part of an income has not been paid because the determination of the right to its collection or its amount is pending a judicial resolution (not merely a lack of payment), the unpaid amounts will be charged to the tax period in which the judicial ruling becomes final , even if they have not been collected in said fiscal year.

Special cases of integration of income pending imputation

1. Loss of taxpayer status due to change of residence

   Regulations: Art. 14.3 Law Income Tax

   In the event that the taxpayer loses his status due to a change of residence, all income pending imputation must be included in the tax base corresponding to the last tax period to be declared for this tax, under the conditions established by regulation, and, where appropriate, a supplementary self-assessment shall be made, without any penalty or late payment interest or surcharge.

   However, when the change of residence occurs to another Member State of the European Union, the taxpayer may choose to impute the pending income in accordance with the provisions of the previous paragraph, or to present, as each of the pending income to be imputed is obtained, a supplementary self-assessment without penalty, late payment interest or any surcharge, corresponding to the last period that must be declared for the IRPF . The self-assessment must be submitted within the declaration period for the tax period in which said income should have been imputed had the loss of taxpayer status not occurred.

2. Death of the taxpayer

   Regulations: Art. 14.4 Law Income Tax

   In the event of the taxpayer's death, all income pending imputation must be included in the tax base of the last tax period to be declared.