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A taxpayer inquired whether transferring their primary residence to a third party designated by a bank to settle a mortgage debt is exempt from Personal Income Tax (IRPF). The Directorate General for Tax (DGT) stated that a deed in lieu of foreclosure to a third party does not lose its legal nature if imposed and accepted by the creditor, and remains subject to the statutory requirements for exemption.
The tax team reviews your specific situation.
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