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How do you declare a home on property that is empty?

Posted by Michel B. on 25/08/2019

A property in property without renting can present multiple scenarios that affect their respective income statement.

From occupied homes, to co-owner spouses or even real estate that include urban gardens. These are just some of the assumptions that the unused and owned real estate declaration can raise.

Do you have a property home without renting? In today’s post we tell you everything you need to know when making your annual income statement. Do not miss it.

A house without renting: multiple scenarios in the declaration

All those taxpayers who have a home owned and that are empty, by law must pay personal income tax. In this sense, it should be clarified that it cannot be the usual residence either.

So … What is the imputation value? It depends on a percentage scale and the amount is the result of:

2% of the cadastral value if it is the first time
1.1% if the exercise has been reviewed at that time or in the previous 10.
If the property still does not have cadastral value: it is charged as follows: 1.1% of 50% of the value to be computed in the Property Tax; in this case, the greater of two, the acquisition value or that verified by the Administration.

Guide | Considerations when declaring an empty property

As reported by the Registry of Fiscal Adviser Economists (REAF), a specialized taxation body of the General Council of Economists (CGE) in its guideline with recommendations for each case: the tax treatment of an empty home, provided that it is not habitual residence, must take into account the following aspects.

Take advantage of shifts

If there is a shift taking advantage of an empty house that does not exceed 14 days, real estate income is allocated taking into account the cadastral value that corresponds to the period of use.

What happens if the cadastral value is unknown? Then the calculation will be made with reference to the acquisition price of the right.

Cadastral data different from those of AEAT

If the AEAT provides fiscal data that differs from the cadastral value assigned by the Territorial Cadastre Management, then the cadastre values ​​must be taken into account. This dissimilarity may be due to the last cadastral renewal process in 2018.

Illegal occupation

Illegal occupation is one of the main headaches for homeowners. In the case of occurrence, and provided that an eviction procedure has been initiated, its declaration of the real estate income imputation regime is excluded. It should be clarified that it is not necessary to wait for its resolution.

Urban land and orchards

A novelty in the declaration that is an increasingly frequent consultation for the proliferation of urban gardens: how are the constructions and land necessary to carry out a particular garden declared?

Well, as long as it is not subject to economic activities and its destination is its own consumption, «with two buildings designed to store tools and other tools, without running water or sanitation, you should not allocate income for the part of the land not built »as the guide reports. Finally, the part corresponding to the constructions and the ground where the orchards or trees settle is declared.

Car rental concessions

If there are real rights of enjoyment, the computable income is 2 or 1.1% as we told you. However, if a concessionaire of the City Council assigns the right of use of a parking space to the residents of the area, the assignee does not have a real right of enjoyment, so he does not have to impute any rent.

Spouses with separate homes

If each of the parties of a marriage resides in their respective habitual residence, but both are co-owners of the two, then they must make the imputation of real estate income on their participation in the ownership of the property.

In short, an empty property home generates a series of fiscal obligations and responsibilities when it comes to taxing real estate assets. Although each assumption carries its own peculiarities, it should be remembered that the payment of personal income tax is always mandatory.

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