Skip to content
Back to index
V0531-20 4 March 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Capital gains from partial property donations are calculated using Inheritance and Gift Tax values

A taxpayer inquired how to quantify capital gains for Personal Income Tax (IRPF) purposes after donating two-thirds of a property. The Directorate General for Taxes (DGT) ruled that, as this constitutes a gratuitous transfer, the rules of Inheritance and Gift Tax must be applied to determine both acquisition and transfer values.

The question raised

Quantification of the amount of the capital gain.

The DGT's ruling

For gratuitous transfers, the amount of the gain or loss is the difference between the acquisition and transfer values. The acquisition value of the donated portion is the proportional part of the actual acquisition amount plus expenses, taxes, and investments. The transfer value is that resulting from the application of the rules of the Inheritance and Gift Tax, not exceeding the market value, reducing the expenses and taxes inherent to the transfer paid by the donor.

Book your free first meeting