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V0692-24 15 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pacto de mejora

No capital gains or losses on asset transfers via improvement pacts under Galician Civil Law

A self-employed individual decides to transfer agricultural machinery to their son through an improvement pact under Galician Civil Law. The DGT has ruled that this inter vivos transfer of assets is considered a gratuitous transfer by reason of death for Income Tax (IRPF) purposes.

The question raised

Application of the provisions of Article 33.3:b) of Law 35/2006.

The DGT's ruling

The transfer of assets in the present through succession pacts of improvement under Galician Civil Law is considered a gratuitous transfer mortis causa. Therefore, Article 33.3.b) of Law 35/2006 applies, establishing that no capital gain or loss occurs as a result of said transfer.

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