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V0333-21 24 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · aportación no dineraria

Contribution of real estate to a company generates a capital gain or loss for Personal Income Tax purposes

A query was made regarding the Personal Income Tax (IRPF) treatment of contributing real estate to a commercial company. The Directorate General for Taxes (DGT) states that this constitutes a change in assets that must be classified as either a capital gain or a loss.

The question raised

Question posed: Tax treatment in Personal Income Tax (IRPF) regarding the contribution of one or more real estate properties to the incorporation of a commercial company.

The DGT's ruling

The capital gain or loss is determined by the difference between the acquisition value and the transfer value. For non-monetary contributions, the transfer value is the higher amount among the nominal value of the shares (plus share premiums), the market price of the securities, or the market value of the contributed asset. This gain is included in the savings tax base. The special regime of the Corporate Tax Law could only be applied if the contributed elements were used for economic activities.

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