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V1752-14 4 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Allocating property to a single partner upon dissolution of a domestic partnership triggers capital gains or losses

A taxpayer inquired whether the dissolution of a stable partnership and the subsequent allocation of the primary residence to their partner results in a capital gain or loss. The Directorate General for Taxes (DGT) ruled that, as this does not constitute a division of common property in equal shares, it does indeed trigger a change in assets.

The question raised

Existence of a capital gain or loss.

The DGT's ruling

The dissolution of a community of property does not generate capital gains or losses if the allocation conforms to the ownership share. However, if assets are allocated at a value exceeding the corresponding share, a change in assets occurs for the other members. In this case, the allocation of the real estate solely to the taxpayer's partner generates a capital gain or loss for the taxpayer, with or without economic compensation.

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