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V1074-21 ·23 April 2021 ·consulta-vinculante Medium impact
Tax

Donating property generates capital gains but not capital losses for Personal Income Tax

A married couple inquired about the tax treatment of donating two properties built on previously acquired land. The Directorate General for Taxes (DGT) ruled that while the donation generates a capital gain or loss, losses from gratuitous transfers are not tax-deductible.

In 6 key points

How it affects those involved

This ruling clarifies that taxpayers cannot offset losses from gratuitous transfers (donations) against other capital gains in their savings tax base.

Lifecycle

2021-04-23PublishedPublished 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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