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V0541-24 9 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Donating real estate to non-profit organisations may be exempt from Personal Income Tax

A query was raised regarding the taxation of a real estate donation to an NGO. The Directorate General for Taxes (DGT) indicates that the resulting capital gain will be exempt provided the recipient entity meets the requirements set out in Law 49/2002.

The question raised

Taxation of the transaction for Personal Income Tax purposes.

The DGT's ruling

The donation of assets generates a capital gain or loss based on the difference between the acquisition and transfer values. If the donee entity is a non-profit entity according to Law 49/2002, the capital gain shall be exempt from tax. The donor may also apply the deductions provided for in the aforementioned Law 49/2002, subject to a limit of 10% of the taxable base.

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