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V1726-21 3 June 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Only the non-monetary contribution exceeding the value of funds used for purchase entitles one to tax benefits

A father seeks guidance on how to value a non-monetary contribution (a property) to his disabled daughter's protected assets, given that part of the purchase is financed using the daughter's own funds. The Directorate-General for Taxes (DGT) rules that only the portion of the property transferred free of charge allows for the application of reductions to the Personal Income Tax (IRPF) taxable base.

The question raised

1) how the value of the contribution made is calculated, for the purposes of the tax benefits applicable to the taxpayer, if the valuation of the non-monetary contribution minus the amount disposed of in cash is taken.

The DGT's ruling

Contributions to protected assets must be made free of charge to generate tax benefits under Personal Income Tax (IRPF). In a mixed operation where real estate is contributed and funds from the daughter's protected assets are used for its acquisition, only the portion of the real estate value that exceeds said funds is considered a gratuitous contribution. The portion corresponding to the funds is considered an onerous acquisition and does not entitle the taxpayer to IRPF reductions, although it does not mandate regularization if the real estate is maintained as a real estate investment within the protected assets.

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