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V1344-14 20 May 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias y pérdidas patrimoniales

Sale of a porcelain collection generates capital gains or losses in personal income tax

A taxpayer enquires about the tax treatment of selling a collection of porcelain figures acquired 30 years ago. The DGT responds that the sale generates capital gains or losses and that, as the items were acquired before 1994, they may be exempt.

The question raised

In view of the possible sale of the collection to a non-resident in Spain at a price lower than the purchase price, an inquiry is made regarding its treatment under Personal Income Tax.

The DGT's ruling

The sale of the collection constitutes a capital gain or loss based on the difference between the acquisition and transfer values. As these are items acquired before December 31, 1994, the ninth transitional provision of the Personal Income Tax Law applies. The portion of the gain generated before January 20, 2006, shall not be subject to tax if the holding period exceeds eight years. The value and date of acquisition must be substantiated by the means of proof admitted under Law.

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