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V0342-19 15 February 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · dación en pago

Transfers of primary residence to a third party authorised by the creditor may qualify for exemptions

A query was raised regarding whether the transfer of a primary residence through a sale and purchase agreement or any other title, rather than a strict deed in lieu of foreclosure, to the creditor or an authorised third party, allows for the application of IBI (IIVTNU) and Income Tax (IRPF) exemptions. The DGT ruled that such transfers may be considered a deed in lieu of foreclosure provided the creditor imposes the condition and accepts it as a means of debt extinction.

The question raised

Application of the tax benefits established in articles 105.1 c) of the consolidated text of the Law Regulating Local Treasuries and 33.4.d) of the Personal Income Tax Law.

The DGT's ruling

Accord and satisfaction does not lose its nature if it is carried out in favor of a third party other than the creditor, provided that the latter imposes the condition and accepts it to extinguish the obligation. The exemption from IIVTNU and IRPF does not limit in favor of whom the transfer is made, but rather requires that it be the habitual residence, to cancel mortgage debt with professional entities, and that the debtor does not possess other sufficient assets. Therefore, transfers in favor of the creditor entity or a third party authorized by it must be subject to the provided exemptions.

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