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V1259-24 31 May 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gains tax on donation of shares if requirements of Article 20.6 of Law 29/1987 are met

A taxpayer over 80 years old has enquired whether the donation of their company's shares to their children can be exempt from Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) has ruled that the transaction will not be subject to capital gains tax, provided the requirements set out in Article 20.6 of the Inheritance and Gift Tax Law are satisfied.

The question raised

Whether the provisions of Article 33.3.c) of the Personal Income Tax Law may be applicable to the donation.

The DGT's ruling

In order for there to be no capital gain or loss in the transfer of shares, the requirements of paragraph 6 of Article 20 of Law 29/1987 must be met. This is independent of whether the donee applies or does not apply the reduction to the taxable base of the Gift and Inheritance Tax. In the case of co-ownership, the exemption shall only apply to the spouse if they also meet the required age or incapacity status.

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