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V1120-15 13 April 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · transmisión de valores

Transfer of shares in a society with real estate assets subject to ITPAJD

The DGT confirms that acquiring all shares in a society whose sole asset is an inactive property is subject to ITPAJD as a real estate transfer, and explains the rules for calculating patrimonial gains for IRPF.

The question raised

1st) Application of Article 108.3 of Law 24/1988, of July 28, on the Securities Market.

The DGT's ruling

The transfer of securities is exempt from VAT and ITPAJD, unless the intent is to evade the tax on the real estate they represent. An intent to evade is presumed when control of an entity is obtained whose assets are composed of at least 50% real estate in Spain not used for business or professional activities. In this case, the transfer of securities shall be taxed for ITPAJD as if it were a transfer of real estate. Regarding IRPF, the sale of shares generates a capital gain or loss that is integrated into the savings tax base, unless the acquisition was less than one year ago.

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