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V0303-20 10 February 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Spending money on essential needs does not constitute a disposal of assets in protected patrimony

A query was raised regarding whether using funds from a protected patrimony to pay fees for a care centre for a person with a disability constitutes an act of disposal. The Directorate-General for Tax (DGT) ruled that the expenditure of money and the consumption of fungible assets to meet essential needs should not be considered a disposal of assets for the purposes of maintaining tax benefits.

The question raised

Whether the application of the contributed money to the satisfaction of the aforementioned expense could be considered as meeting vital needs.

The DGT's ruling

The expenditure of money and the consumption of fungible goods integrated into the protected assets to meet the vital needs of the beneficiary person is not considered an act of disposal. This allows for compliance with the requirement to maintain the contributions during the four years following the year of the contribution, as established in Article 54.5 of the Personal Income Tax Law (LIRPF). Nevertheless, the taxpayer must prove the existence of the assets, the vital needs, and the exceptional circumstances through means of proof admitted under Law.

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