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V1785-20 4 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · usufructo vitalicio

Life usufruct may be amortised by applying 3 per cent to its acquisition cost

A married couple sought guidance on how to amortise usufruct rights after transferring bare ownership to a child via an improvement pact. The Directorate General for Taxes (DGT) ruled that, as it is a life interest, amortisation is calculated by applying 3 per cent to the acquisition cost of the usufruct.

The question raised

Regarding a leased property, an inquiry is made concerning the depreciation of the usufruct right.

The DGT's ruling

When income derives from a life interest in use or enjoyment, the depreciation shall be the result of applying a rate of 3 percent to the acquisition cost incurred. This cost shall be determined proportionally based on the cost incurred at the time for the acquisition of full ownership, according to the withholding tax applicable to the transfer of the bare ownership.

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