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<h1>Income from Immovable Property Taxed in State Where Property is Located, Covers Leasing and Direct Use.</h1> Income derived by a resident of one Contracting State from immovable property located in the other Contracting State may be taxed in the State where the property is situated. 'Immovable property' is defined according to the laws of the State where the property is located. This provision applies to income from direct use, leasing, or any other form of use of immovable property, including income from enterprises and independent personal services involving such property.