On 5 October 2026, the DGI released a focused guide on the taxation of real estate capital yields (Rendimientos de capital inmobiliario) under the Personal Income Tax (IRPF) and Non-Resident Income Tax (IRNR) regimes. The publication clarifies the definition of taxable yields, allowable deductions (maintenance, insurance, property taxes), and the applicable withholding rates for resident and non-resident property owners. It also addresses the treatment of capital gains on property sales.
Key Takeaways
- Unified Yield Definition: The guide harmonizes the concept of “capital yield” across residential and commercial leases, including subletting and usufruct arrangements.
- Deduction Framework: Taxpayers may deduct proven expenses directly related to generating the income, but capital improvements are capitalized and recovered via depreciation.
- Non-Resident Withholding: A flat 12% withholding applies to gross rental income paid to non-residents, with no deductions allowed, unless a tax treaty provides otherwise.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement