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V1004-19 8 May 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · nuda propiedad

Donating bare ownership of a main residence by those over 65 may be exempt from Personal Income Tax

A married couple over the age of 65 sought clarification regarding the taxation of the donation of two properties with a life usufruct reservation. The Directorate General for Taxes (DGT) ruled that while donating bare ownership generates a capital gain or loss, the main residence may be exempt.

The question raised

Taxation of the donation under Personal Income Tax.

The DGT's ruling

The donation of bare ownership generates a capital gain or loss due to the variation in the value of the assets. If the donated property is the primary residence of the donors, who are over 65 years of age, the capital gain resulting from the transfer of the bare ownership shall be exempt. In the event that the requirements for a primary residence are not met, the gain shall be included in the savings tax base.

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