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V0440-15 4 February 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IRPF · aportación no dineraria

Inheritable property contributions may be exempt from IRPF if conditions met

Individuals inquire whether contributions of inherited real estate to a company may be exempt from IRPF. The DGT states that the special regime of the Corporate Income Tax law may apply if certain conditions are met.

The question raised

Whether the contribution of the real estate would be exempt from Personal Income Tax in accordance with the provisions of Article 37.1.d) of Law 35/2006, of November 28, on Personal Income Tax and in accordance with Article 87 of Law 27/2014, on Corporate Income Tax

The DGT's ruling

The contribution of real estate may qualify for the special regime that avoids the inclusion of income in Personal Income Tax (IRPF) if the requirements of Article 87.1 of the Corporate Income Tax Law (LIS) are met. These requirements include that the receiving entity be a resident in Spain or have a permanent establishment, that the contributor retains at least 5% of the equity, and that, if the contributor is a resident in the EU, the assets are used for economic activities with commercial accounting. The DGT cannot determine whether these requirements are met without additional data.

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