Skip to content
Back to index
V0323-19 15 February 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gain or loss on the donation of shares if requirements of Art. 20.6 of the Inheritance and Gift Tax Law are met

A retiree over the age of 65 seeks advice on the tax treatment of donating all their shares to their two children. The DGT notes that while donations typically generate capital gains or losses, an exception exists that allows for the presumption of no such gain or loss if the requirements of Article 20.6 of the Inheritance and Gift Tax Law are satisfied.

The question raised

Tax treatment of said operation in the Personal Income Tax of the taxpayer.

The DGT's ruling

The non-existence of capital gains or losses for the donor in lucrative transfers of shares shall be estimated if the requirements of paragraph 6 of Article 20 of Law 29/1987 are met. To this end, the donor must be sixty-five years of age or older (or have a permanent disability), cease to perform management functions and receive remuneration for them, and the donee must retain what was acquired and be entitled to the exemption from Wealth Tax for ten years. Compliance with these requirements is sufficient, and the requirements of regional regulations are irrelevant.

Book your free first meeting