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A taxpayer wishes for their spouse to become the sole owner of a property acquired before marriage by paying compensation. The Directorate General for Taxes (DGT) has ruled that the portion of the property belonging privately to the taxpayer, which is transferred in excess of the community property share, generates a capital gain or loss for Income Tax (IRPF) purposes.
This ruling clarifies that transferring private assets within a marriage to consolidate ownership in a spouse's name is treated as a taxable event if it exceeds the community property interest.
The tax team reviews your specific situation.
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