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Practical Guide to Income Tax 2025. Part 1.

Example: Real estate income allocation

Mr. JVC, during the year 2025, has been the owner of the following real estate:

  • Primary residence, whose unaudited cadastral value amounts to 34,800 euros.

  • Parking space acquired together with the property and whose unaudited cadastral value amounts to 3,900 euros.

  • Apartment on the beach that is only used during the month of vacation. The cadastral value of the property, which was revised with effect from 2015, amounts to 40,800 euros.

  • Apartment purchased for 105,000 euros on July 1, 2025 and which, as of September 1 of that year, has been rented for a monthly rent of 600 euros. As of December 31, 2025, the cadastral value of the property has not been notified to him. The value declared by the taxpayer for the purposes of the Tax on Property Transfers and Documented Legal Acts is the acquisition value, without the tax authorities having proceeded to modify it.

Determine the allocation of real estate income corresponding to said properties:

Solution

  • Primary residence and parking space: no imputation of real estate income is applicable.

  • Apartment at the beach. Imputed real estate income:

    1.1 per 100 s/40,800 = 448.80 (1)

  • Apartment acquired in 2025. Imputed real estate income:

    1.1 per 100 s/ (50% x 105,000) x 62 ÷ 365 = 98.10 (2)

Total imputed real estate income (448.80 + 98.10) = 546.90

Notes to the example: 

(1) Since the cadastral value was revised in 2015, that is, after January 1, 2012, the percentage to be applied is 1.1 percent as a result of the modification of the fifty-fifth Additional Provision of the Law of IRPFABBR by section Three of article 14 of Royal Decree-Law 16/2025, of December 23 (BOE December 24). (Back)

(2) Since the cadastral value of the property as of December 31, 2025, has not been notified to its owner, the percentage of 1.1 percent is applied to 50 percent of the acquisition value of the property, a value that has not been modified by the Administration for the purposes of the Property Transfer Tax and Documented Legal Acts. Furthermore, the imputed income must be determined in proportion to the number of days that the property has been available to its owner (from July 1 to August 31). Finally, the income derived from leasing the property is considered to be income from real estate capital, in which section it must be declared. (Back)