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V1277-25 10 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimiento del capital mobiliario

Dividends received by a shareholder are considered capital gains for income tax

A taxpayer who inherited the entire company decides to distribute dividends from reserves created before inheritance. The DGT clarifies whether these amounts are capital gains or a reduction in the cost of shares.

The question raised

What would be the tax treatment in Personal Income Tax (IRPF) for dividends: income from movable capital or a reduction in the cost of the shares received.

The DGT's ruling

The amounts received from the distribution of dividends are considered income from movable capital for individual shareholders, pursuant to Article 25.1.a) of Law 35/2006. This income must be included in the savings tax base in accordance with Article 49 of the Personal Income Tax Law (LIRPF). There is currently no exemption or deduction for this income.

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