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V0276-24 29 February 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IVA · cartera de seguros

Sale of an insurance portfolio is subject to VAT and generates a capital gain or loss for Income Tax purposes

An insurance broker has enquired about the taxation of the transfer of their client portfolio in exchange for a percentage of future commissions. The DGT has determined that the transfer is subject to VAT and that the result for Income Tax purposes shall be treated as a capital gain or loss.

The question raised

Taxation under VAT and Personal Income Tax.

The DGT's ruling

The transfer of an insurance portfolio is a transaction subject to VAT, as it does not constitute an insurance or reinsurance operation due to the lack of a contractual relationship with the insured. For Personal Income Tax purposes, the portfolio is an affected asset, therefore its transfer generates a capital gain or loss. The taxpayer may estimate the transfer price or apply the proportional imputation rule for transactions with deferred payment.

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