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V1756-18 18 June 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
ISD · nuda propiedad

The donation of bare ownership of shares has economic value and may not generate a capital gain for Personal Income Tax purposes

A taxpayer inquires about the tax treatment of the donation of the bare ownership of shares while reserving the usufruct. The DGT clarifies that bare ownership has economic value for Inheritance and Gift Tax and analyzes the possible exemption of capital gains in the donor's Personal Income Tax.

The question raised

Tax treatment of said donation in Inheritance and Gift Tax and in Personal Income Tax.

The DGT's ruling

In Inheritance and Gift Tax, bare ownership has its own economic valuation, regardless of whether the donor reserves the power of disposal. For Personal Income Tax, the donation of the bare ownership of shares that meet the requirements of art. 20.6 of the LISD will have the same treatment as the transfer of full ownership, with the non-existence of a capital gain or loss for the donor being estimated. In the event that such requirements are not met, the donation will generate a capital gain or loss based on the difference between the acquisition and transfer values.

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