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V0218-15 21 January 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta vitalicia

Gain from the transfer of agricultural exploitation in exchange for a life annuity is taxed in the year of establishment

A taxpayer inquired about the taxation of the transfer of their agricultural exploitation in exchange for a life annuity. The DGT clarifies how to calculate the capital gain and how the received annuities will be taxed.

The question raised

Taxation under Personal Income Tax regarding the transfer carried out and the receipt of the life annuity.

The DGT's ruling

The capital gain is determined by the difference between the actuarial present financial value of the annuity (not less than the normal market value) and the book value of the transferred fixed asset. This gain is attributed to the tax period in which the annuity is established. The life annuities received are considered income from movable capital, with the yield being computed as the percentage applicable to the annuity according to the age of the annuitant at the time the annuity is established.

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