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V1320-25 15 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · usufructo vitalicio

Free creation of a life-term usufruct over shareholdings deemed capital movable income

A taxpayer enquires about the tax treatment of establishing a free life-term usufruct over limited company shares in favour of relatives. The DGT states that such income is classified as capital movable income and that, being gratuitous, it will be presumed to be remunerated unless proven otherwise.

The question raised

Tax treatment of said operation in the Personal Income Tax of the taxpayer.

The DGT's ruling

The creation of rights of use or enjoyment over shares is classified as income from movable capital pursuant to Article 25.1.c) of the Personal Income Tax Law (LIRPF). As it is carried out free of charge, the presumption of remuneration under Article 6.5 of the LIRPF applies, and it must be valued at fair market value pursuant to Article 40.1. The proof of the gratuitous nature is a matter of fact that must be established by the taxpayer.

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