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A taxpayer inquired whether transferring a property to their child through a succession agreement of partition (under Galician civil law) is exempt from Income Tax (IRPF). The Directorate General for Taxes (DGT) has revised its previous stance, ruling that these transfers are indeed considered to occur by reason of death and therefore do not trigger capital gains tax.
This ruling provides legal certainty for taxpayers in Galicia, preventing the taxation of capital gains on property transfers made through specific Galician succession mechanisms, as they are now formally recognised as occurring due to death.
The tax team reviews your specific situation.
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