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V0765-26 7 April 2026 · SG de Tributos Locales Criterion in force
OTRO · pacto de mejora

Pacto of improvement granting lifelong usufruct subject to municipal capital gains tax

The consultant asks whether a new pact of improvement to obtain lifelong usufruct from their mother is subject to municipal capital gains tax. The DGT responds that, as it involves a profitable transfer of a real right of enjoyment, it constitutes a taxable event.

The question raised

It is asked whether the new improvement pact is subject to the Tax on the Increase in Value of Urban Land.

The DGT's ruling

The award of a life usufruct through an improvement pact constitutes a lucrative transfer of a real right of enjoyment that limits ownership. This triggers the taxable event for the ITPDDU pursuant to Article 104.1 of the TRLRHL. The taxpayer shall be the acquirer of the right, and the accrual shall occur on the date of the transfer.

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