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V1317-22 9 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Termination of a sale and purchase agreement without property transfer does not generate capital gains or losses

A taxpayer inquired whether receiving and subsequently returning funds due to the termination of a real estate sale and purchase agreement had implications for their Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) ruled that, as the property was never delivered, no legal acquisition or change in assets occurred.

The question raised

Effects on the taxpayer's Personal Income Tax (IRPF) returns for 2021 and 2022 regarding the receipt and refund of the aforementioned amounts.

The DGT's ruling

For the acquisition of real estate to exist, both title and mode (tradition or delivery) must concur. The signing of a private contract does not transfer ownership by itself. When the contract is rescinded and the amounts are returned without the delivery of the real estate having taken place, there is no variation in the value of the assets that determines a capital gain or loss pursuant to Article 33.1 of the Personal Income Tax Law (LIRPF).

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