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V0106-21 28 January 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención de ganancias patrimoniales

Capital gains from the sale of shares may be exempt if reinvested in start-ups

The taxpayer inquires about the application of the exemption regarding capital gains from the sale of company shares. The DGT clarifies that the gain may be exempt if the deduction for investment in new or recently created companies was previously applied and the amount is subsequently reinvested.

The question raised

Possible application of the exemption regulated in Article 38.2 of the Personal Income Tax Law.

The DGT's ruling

The capital gain from the transfer of shares or interests to which the deduction under Article 68.1 of the Personal Income Tax Law was applied may be excluded from taxation if the amount obtained is reinvested in the acquisition of new shares or interests in entities that meet the requirements of the aforementioned article. The reinvestment must be carried out within a maximum period of one year from the transfer. If the reinvested amount is lower than the amount obtained, only the proportional part of the gain shall be excluded. The reinvestment may be made in different companies provided that all meet the legal requirements.

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