BackIn its resolution of 17 July 2025 (Rec. 3697/2025), the TEAC established that taxpayers who choose the special impatriate regime (Article 93 LIRPF) are required to impute deemed rental income on urban properties located in Spain not used for business activities, even when these properties constitute their primary residence.
• Article 13.1.h TRLIRNR includes as taxable Spanish-source income the deemed rental income of urban properties not used for economic activities.
• Article 24.5 TRLIRNR refers to Article 85 LIRPF solely to determine how the income is quantified (2% or 1.1% of cadastral value, prorated by days). It does not extend the IRPF exemption for primary residence to the non-resident regime. The rule of lex specialis applies: Article 13.1.h prevails.
Rejection of contrary views:
The TEAC explicitly overturns the interpretation, previously supported by the TEAR and the High Court of Justice of Madrid, that excluded the primary residence from deemed income under the impatriate regime. The Court stressed that the concept of “primary residence” is specific to the general IRPF system and cannot be imported into the IRNR. The impatriate regime is optional, but once chosen, it must be applied as a whole, without cherry-picking benefits.
Unified criterion:
Taxpayers under the impatriate regime (Article 93 LIRPF) must impute deemed rental income on all urban properties in Spain not used for business purposes, including their primary residence.
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