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V0299-24 5 March 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · junta de compensación

Sale of plots following a compensation assembly may be classified as business income or capital gains

A taxpayer has inquired whether the sale of plots acquired through a fiduciary compensation assembly should be taxed as business income or as a capital gain. The DGT indicates that the classification depends on whether the owner carries out real estate development activities or actively participates in the management of the assembly.

The question raised

Whether the subsequent sale of the plots received would result in income from economic activities or capital gains or losses.

The DGT's ruling

If the owner carries out real estate development activities or participates in the management of the board, the sale of the land is considered income from economic activity. Otherwise, the sale generates a capital gain or loss. For the calculation of the capital gain, urbanization expenses incurred after acquisition are considered improvements and are added to the acquisition value.

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