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V0200-21 9 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · usufructo

Free transfer of usufruct generates capital gain or loss for Income Tax purposes

A person holding a usufruct over urban property intends to transfer said right free of charge to the bare owners. The DGT rules that this transfer generates a capital gain or loss subject to taxation.

The question raised

Taxation of the operation under Personal Income Tax.

The DGT's ruling

The transfer of usufruct generates a capital gain or loss pursuant to Article 33.1 of the Personal Income Tax Law (LIRPF). The result is determined by the difference between the acquisition and transfer values, following the rules set forth in Articles 34 and 35 of the law. In transfers for consideration, the rules of the Inheritance and Gift Tax shall apply without exceeding the market value. This gain or loss shall be included in the savings tax base.

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