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V0421-20 24 February 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Capital gains from property sales must be recognised in the period the public deed is executed

A taxpayer sold a property, receiving an advance payment in 2019 and the remainder in 2020 following the signing of the deed. The Tax Agency has ruled that the gain must be declared in the year the sale is formalised through a public deed.

The question raised

To which tax period should the capital gain obtained from the transfer of the dwelling be imputed?

The DGT's ruling

The capital gain or loss must be imputed in the tax period in which the change in assets occurs, that is, at the time of the delivery of the goods. According to the Civil Code, the execution of the public deed is equivalent to the delivery of the thing, unless otherwise deduced. Therefore, the gain occurs in the period in which the public deed is executed.

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