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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.


Income from Immovable Property

(1) Income derived by a resident of a Contracting State from immovable property (including income derived from agriculture or forestry operations) situated in the other Contracting State may be taxed in that other State.

(2) The term "immovable property" shall have the meaning attributed to it by the Law of the Contracting State wherein the property at issue is situated. The aforementioned term shall include, in any case, property accessory to immovable property, livestock and the equipment utilized in agriculture and forestry exploitation, the rights to which the provisions of private law related to immovable property are applied, usufruct of immovable property and the rights to receive fixed or variable payments in exchange for the exploitation or concession of mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.

(3) The provisions of paragraph (1) of this Article shall apply to income derived from the direct use, leasing or share-farming, as well as by the exploitation of immovable property in any other form.

(4) When ownership of shares or holdings or other rights attribute directly or indirectly to the owner of such shares, or holdings or rights, granting the right of enjoyment of immovable property, the income derived by direct use, leasing or share-farming, or any other use of such enjoyment rights, may be liable to taxation in the Contracting State wherein the immovable property is situated.

(5) The provisions of paragraphs (1), (3) and (4) of this Article shall also apply to the income derived from immovable property of an enterprise.