On 14.12.2021 the Supreme Court declared that all the amounts obtained by a landlord in a demand of eviction are real estate capital yields and not capital gains.
The situation that leads to this sentence is the following:
The owner of a premises filed an eviction claim against a tenant who did not pay the rent. This claim was fully upheld and sentenced the defendant to:
eviction from the premises plus
payment of the amount owed on the date of the sentence and
payment of the future amounts that would accrued up to the total eviction of the premises.
Some months afterwards, the landlord declared the referred amounts as a compensation, thus, as a capital gain, and integrated them into the taxable savings base.
Well, the Spanish Supreme Court has been very clear considering that the amounts recognized by the eviction sentence are income on real estate in any case, since:
a lease contract can only terminated by a sentence recognizing the non-payment and
this sentence does not have retroactive effects.
In addition, article 22.1 of Personal Income Tax Law considers that any income derived from a lease must be considered real estate capital yields, regardless the name or nature of the income.
The rents paid by the evicted tenant are always income from real estate capital, regardless whether these rents are present or future.