Skip to content
Back to index
V0095-19 15 January 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Option to proportionally attribute capital gains from instalment sales

A taxpayer inquired about the taxation timing for the sale of a property with deferred payments. The DGT ruled that, since the civil transfer occurred in 2018, the taxpayer may choose between taxing the full amount in that year or attributing the gain proportionally based on the payments received.

The question raised

Taxation under Personal Income Tax (IRPF).

The DGT's ruling

The transfer of ownership occurs when legal possession is delivered to the buyer. As it is a transaction with deferred payment (the period between delivery and the final installment exceeds one year), the taxpayer may opt to impute the capital gain proportionally as the payments become due. This allows for the distribution of taxation between the year of delivery and the years in which the successive payments are received.

Book your free first meeting