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V0780-23 3 April 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · renta mundial

Transfer of a property in France by a Spanish resident may be taxable in Spain under the treaty

A Spanish resident asks whether they must include in their personal income tax the transfer of a property located in France. The DGT responds that taxation will depend on the nature of the property and the provisions of the Spain-France double taxation treaty.

The question raised

A request to determine whether said transfer must be included in the Personal Income Tax.

The DGT's ruling

Residents in Spain are taxed on their worldwide income pursuant to Article 2 of the Personal Income Tax Law (LIRPF). The taxing power over gains from the alienation of assets in France is governed by Article 13 of the Spanish-French Convention, which distinguishes between immovable property, substantial shareholdings, movable property of a permanent establishment, or any other asset. In the event of double taxation, Spain shall apply the deduction method provided for in Article 24.2 of the Convention.

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