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V0721-22 1 April 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · principio de calificación

Using personal funds to purchase a home with a partner may be classified as a gift or a loan

An individual intends to purchase a property at 50% ownership with their partner using funds received as a gift from their mother. The DGT clarifies that the transaction between the applicant and their partner will be classified as a gift if it is gratuitous, or a loan if it is onerous.

The question raised

Question raised: Whether the use of this money in the purchase of the property in the name of the applicant and her partner constitutes a donation to the applicant's partner.

The DGT's ruling

The Administration may qualify the true nature of the contract regardless of how the parties name it. If it is qualified as a loan, it is subject to Transfer Tax (ITP) but exempt. If it is qualified as a donation, it shall be subject to Inheritance and Gift Tax.

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