Full returns
Leasing of real estate or creation or transfer of rights or powers of use or enjoyment over the same
Regulations: Art. 22.2 Law Income Tax
The gross income from real estate capital shall be the amounts that must be paid for all purposes by the purchaser or assignee of the rights or powers of use or enjoyment established on the real estate or, where applicable, those that must be paid by the lessee or sub-lessee of such real estate.
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 result of the health crisis and the declaration of a state of emergency, in order 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 total return on real estate capital corresponding to the periods affected is that corresponding to the new amounts agreed by the parties.
Furthermore, in cases where the deferral of rental payments is agreed, it will not be appropriate to reflect a real estate capital return in the months in which said payment has been deferred because the payability of the rent has been deferred (the imputation of the rent is not appropriate because it is not payable), in application of the provisions of article 14.1.a) of the Personal Income Tax Law, which provides that income from work and capital will be imputed to the tax period in which they are payable by their recipient.
The situation is different when the landlord does not agree to modify or reduce the amount set as the rental price (whatever the amount of the reduction) or agree to defer payment, resulting in non-payment of the rental income when it is due. In this case, the amounts corresponding to the leasing of the property must be attributed as full income from real estate capital, even if they have not been received.
Sublease or transfer
In the case of sublease or transfer, the owner or usufructuary of the property must compute as gross income from real estate capital the amounts received as participation in the price of such operations.
The amounts received by the lessee in the event of transfer or assignment of the lease rights are considered capital gains, but those received in the event of subleasing are income from movable capital.