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A query was raised regarding whether transferring a primary residence to a third party via 'dación en pago' (payment in lieu of cash) to cancel a mortgage allows for Income Tax (IRPF) and Property Transfer Tax (IIVTNU) exemptions. The Directorate General for Tax (DGT) ruled that this is possible if the creditor imposes or accepts this condition to extinguish the debt.
The tax team reviews your specific situation.
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