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V0342-19 ·15 February 2019 ·consulta-vinculante Medium impact
Tax

Transfers of primary residence to a third party authorised by the creditor may qualify for exemptions

A query was raised regarding whether the transfer of a primary residence through a sale and purchase agreement or any other title, rather than a strict deed in lieu of foreclosure, to the creditor or an authorised third party, allows for the application of IBI (IIVTNU) and Income Tax (IRPF) exemptions. The DGT ruled that such transfers may be considered a deed in lieu of foreclosure provided the creditor imposes the condition and accepts it as a means of debt extinction.

In 6 key points

How it affects those involved

This ruling provides legal certainty for debtors seeking to protect tax exemptions when transferring their primary residence to settle debts, even if the transaction is not a formal deed in lieu of foreclosure, as long as the creditor agrees to the terms.

Lifecycle

2019-02-15PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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