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V1103-22 19 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Capital gains from property sales are recognised in the period of delivery or the public deed

The taxpayer asks when to declare the gain from selling their home if a private contract is signed now but the public deed is executed later, and whether the exemption for those over 65 applies. The Tax Agency responds that the gain is recognised when possession is delivered or the deed is executed, and that the exemption for those over 65 applies if the individual has reached that age at the time of delivery.

The question raised

Temporal imputation of the capital gain in Personal Income Tax (IRPF).

The DGT's ruling

The capital gain or loss is imputed in the tax period in which the change in assets occurs, that is, at the time of the delivery of the assets. Delivery is understood to have occurred with the execution of a public deed, unless the delivery of possession at an earlier time is proven. For the exemption applicable to persons over 65 years of age, the taxpayer must have reached said age at the time of the delivery of the dwelling.

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