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V1249-15 ·24 April 2015 ·consulta-vinculante Medium impact
Tax

Transfer of primary residence in lieu of debt repayment to a third party designated by the creditor may be exempt from Income Tax

The inquirer asks whether the exemption for transferring a primary residence in lieu of debt repayment applies if the transfer is made to an entity other than the creditor. The Directorate General for Taxes (DGT) responds that the exemption is applicable provided that the creditor mandates the transfer to a third party and all legal requirements are met.

In 6 key points

How it affects those involved

This ruling clarifies the scope of tax exemptions for debt settlements involving property, confirming that the recipient does not necessarily have to be the original creditor to qualify for the exemption.

Lifecycle

2015-04-24PublishedPublished 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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