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V1883-15 15 June 2015 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · usufructo vitalicio

The donation of life usufruct may generate income from real estate capital in Personal Income Tax

Siblings inquire about the taxation of the donation of the life usufruct of a dwelling to a sibling with a disability. The DGT indicates that, if gratuitousness is not proven, it must be valued at market price, and if it is proven, the net income under Article 85 of the LIRPF shall be imputed.

The question raised

Taxation of the transaction for the donors and the donee.

The DGT's ruling

The creation of a usufruct generates, unless proven otherwise, income from real estate capital valued at market price. If the gratuitous nature of the donation is proven, the impact on Personal Income Tax is limited to the imputation of the net income provided for in Article 85 of the LIRPF during the duration of the usufruct. In the event that gratuitousness is not proven, the normal market value shall apply, provided that the net income is not lower than that of Article 85.

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