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HomeLatest NewsIncome Statement 2022: how do you have to declare real estate?

Income Statement 2022: how do you have to declare real estate?

Date: March 19, 2024 Time: 11:08:49

The 2022 Income Declaration Campaign starts in three weeks Real estate can be included in several of these sections and it is their owners or usufructuaries who must include them in their declarations.

These assets may have different uses or destinations, which conditions “both the obtaining or not of income subject to Personal Income Tax (IRPF) and the type of subject income that must be declared”, according to the Tax Agency itself. .

In the first place, the habitual residence does not generate any type of income or is taxed by personal income tax, but all its data is included in the declaration. The Treasury understands that a home is habitual when a continuous period of at least three years has passed. However, it also recognizes the habitual character when the death of the taxpayer occurs or when the taxpayer inhabits it effectively and permanently, within a period not exceeding twelve months from the date of acquisition or completion of the works. .

Allocation of real estate income in Income 2022

The rest of non-regular homes do pay personal income tax, even if they are empty during part of the year because they are the second residence of taxpayers. It is what is known as imputation of real estate income. In this box, the Tax Agency includes all income “for being the owner or holder of a real right to enjoy real estate, including time-share accommodation.”

The tax that the Treasury applies is 2% on the cadastral value of the property that appears on the IBI receipt. However, 1.1% of the cadastral value is applied when the value of the property has not been reviewed in the last 10 years or when the property does not have a defined cadastral value. In the latter case, the value to apply the 1.1% will be half the purchase value of the home or the value of the property verified by the Administration for the purposes of other taxes.

economic activities

The Ministry of Finance establishes the imputation of real estate income subject to a series of requirements that must be met. Among others, no effects of economic activities or those that did not generate returns on capital were found. In these cases the taxation is different.

Real estate used for economic activities are those necessary to obtain business or professional income. And the Tax Agency specifies that they are “the real estate in which the activity is carried out, intended for the economic and socio-cultural services of the personnel at the service of the activity or some other patrimonial elements necessary to obtain the respective returns”.

income from movable capital

On the other hand, a home can generate returns on real estate capital. According to the personal income tax law, “those derived from the lease or from the constitution or transfer of rights or faculties of use or enjoyment of rural and urban real estate or real rights that fall on them, whose ownership corresponds to the taxpayer and is not found to economic activities carried out by it.”

It must be taken into account that the same property may have had two uses during the same year for which it is declared. For example, a property that has been rented -for part or all of the year- thus giving rise to real estate capital income, and which has also remained successively or simultaneously, available to the taxpayer, giving rise to imputation of income real estate.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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