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V0774-20 7 April 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Transfer of real estate ownership for Income Tax requires both title and mode

The inquirer asks when tax is due for the sale of a property involving deferred payment and a subsequent deed. The DGT rules that capital gains or losses are determined when the civil transfer occurs, which requires both the contract and the delivery of the asset.

The question raised

Taxation under Personal Income Tax (IRPF).

The DGT's ruling

The transfer of ownership does not occur by the mere contract, but requires the conjunction of title (contract) and mode (tradition or delivery). The capital gain or loss must be attributed to the tax period in which said civil transfer occurs. The transfer value shall be the actual amount effectively paid, provided it is not lower than the normal market value.

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