Renting a property to a partner: Restrictions on applying family business tax benefits.

This week, the article titled “Renting a property to a partner is not eligible for tax benefits, according to the TEAC”, written by journalist David Casals and with expert contributions from Emma S. Corretger, partner at CIM Tax & Legal. This analysis examines the recent ruling 19/12/24 from the Central Economic-Administrative Court (TEAC).

Emma, an expert in family business taxation, explains how this ruling penalizes taxpayers who reside in a property rented to their own family business. This criterion directly impacts the reduction in Inheritance and Donations Tax (ISD) and potentially the exemption in the Wealth Tax (IP).

One of the most important aspects pointed out is that, according to the new approach adopted by the TEAC, properties rented to partners or relatives (up to 2nd degree for IP and 3rd degree for ISD) will not be considered as being used for economic activities. This contrasts sharply with the situation of properties rented to third parties, which can benefit from tax advantages. As a result, this interpretation limits the application of family business tax benefits.

To learn all the details, we invite you to read the full article:

We thank Expansión for their trust in our team.