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V1812-20 8 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Tax benefits cannot be applied if future contributions are reflected in a single public deed

Consultants inquired whether a single notarial deed could be used to plan annual property contributions to a protected estate. The DGT ruled that subsequent contributions must adhere to the same formalities as the initial establishment, requiring a public document for each contribution made.

The question raised

1. Whether it is possible to carry out in a single public notarial deed the contribution of percentages of a real estate property, fixing each year the percentage contributed, the value, and the date on which each annual contribution shall take effect.

The DGT's ruling

To apply the personal income tax (IRPF) tax benefits, contributions made after the establishment of a protected assets scheme must be carried out by means of a public document authorized by a notary or a judicial resolution. The formality requirement is not met if there is an intention to reflect future or unmade contributions in a public deed. Registration in the Land Registry is not a necessary requirement for the establishment of or contributions to the protected assets scheme.

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