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V0866-19 23 April 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias y pérdidas patrimoniales

Transfer of premises by court order generates capital gains or losses for Income Tax purposes

Property owners transferred two commercial premises to the Generalitat following a court ruling enforcing a prior agreement. The DGT has determined that this constitutes an onerous transfer resulting in capital gains or losses, rather than compensation.

The question raised

Question raised: Taxation of the transfer.

The DGT's ruling

The transfer of the premises constitutes an onerous alienation; therefore, the capital gain or loss is the difference between the acquisition and transfer values. Legal and court representative fees arising from the judicial process may be deducted from the transfer value. As these are assets not used for economic activity and were acquired before 1994, the reduction for holding period under the ninth transitional provision applies. Taxpayers over 65 years of age may apply for the exemption for reinvestment in a life annuity subject to the requirements of the law.

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