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V0050-21 18 January 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Spending money and consuming fungible goods for vital needs is not considered a disposal of protected assets

A query was raised regarding whether using funds from protected assets to cover a person with a disability's expenses constitutes a disposal of assets, which would trigger the repayment of tax benefits. The Directorate-General for Taxes (DGT) ruled that spending money to meet vital needs does not constitute a disposal of assets or rights.

The question raised

Whether the use of money forming part of the protected assets to meet said expenses is considered an act of disposal.

The DGT's ruling

The expenditure of money and the consumption of fungible goods integrated into the protected assets to meet the vital needs of the beneficiary person shall not be considered a disposal of assets or rights for the purposes of the requirement to maintain contributions during the four years following the year of their contribution. Nevertheless, the taxpayer must prove the existence of the assets, the vital needs, and the exceptional circumstances through means of proof admitted in Law.

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