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V0508-20 2 March 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · patrimonio protegido

ITP exemption does not apply to property purchases using protected assets

A query was raised regarding whether the Transfer Tax (ITP) exemption for contributions to protected assets for persons with disabilities extends to the purchase of real estate using those funds. The Directorate General for Tax (DGT) ruled that the exemption only covers the initial contributions.

The question raised

Confirmation that the exemption established in Article 45.I.B.21 of the Recast Text of the Transfer Tax and Documented Legal Acts Tax covers the purchase and sale of a dwelling using protected assets, given that said operation does not alter the protected assets but only their nature, which changes from being a bank deposit to being real estate.

The DGT's ruling

The exemption provided in Article 45.I.B.21 of the Recast Text of the ITP and AJD covers exclusively contributions made to protected assets. Pursuant to the prohibition of analogy in the General Tax Law, this benefit cannot be extended to subsequent transactions carried out using said assets.

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