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A self-employed individual decides to transfer agricultural machinery to their son through an improvement pact under Galician Civil Law. The DGT has ruled that this inter vivos transfer of assets is considered a gratuitous transfer by reason of death for Income Tax (IRPF) purposes.
This ruling clarifies the tax treatment of transfers made under Galician Civil Law, specifically categorising 'improvement pacts' as mortis causa transfers for tax purposes, which affects how capital gains and losses are calculated.
The tax team reviews your specific situation.
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