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V0673-25 15 April 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · usufructo temporal

A temporary usufruct over shares is deemed capital mobile income

A taxpayer donated a five-year temporary usufruct of their shares to their children, retaining the bare ownership. The DGT considers this transaction as capital mobile income, not as an increase in wealth.

The question raised

Income to be included as a consequence of said donation in the 2024 Personal Income Tax return.

The DGT's ruling

The creation of rights of use or enjoyment over securities representing an interest in equity is considered income from movable capital pursuant to Article 25.1.c) of the Personal Income Tax Law (LIRPF). As it is a transaction for consideration, it is presumed to be remunerated in accordance with Article 6.5, and must be valued at fair market value pursuant to Article 40.1. The jurisprudence of the Supreme Court confirms that this remuneration constitutes income from movable capital and not an increase in net worth.

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