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V0938-25 27 May 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reducción de capital

Return of capital via property may be treated as capital gains

The consultant asks about the tax treatment of a capital reduction in a limited company where capital is returned by delivering real estate. The DGT explains that the market value of the property may reduce the acquisition value of shares or be treated as capital gains depending on its origin.

The question raised

Tax treatment of said operation in the Personal Income Tax of the taxpayer.

The DGT's ruling

The normal market value of the real estate property that does not derive from undistributed profits reduces the acquisition value of the shares until their cancellation. If the amount exceeds said value, the excess is taxed as income from movable capital, with specific limits if the values are not listed on regulated markets. On the other hand, the portion of the refund corresponding to undistributed profits shall be taxed in its entirety as income from movable capital.

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