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V1951-25 15 October 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · reducción de capital

Return of contributions via immovable may be treated as capital movable income

A partner receives an immovable as a return of contributions following a capital reduction in a limited liability company. Tax authorities explain that the fiscal treatment depends on whether the return arises from undistributed profits or from capital.

The question raised

Tax treatment of said operation in the Personal Income Tax of the taxpayer.

The DGT's ruling

The normal market value of the real estate received reduces the acquisition value of the shares until their cancellation. If the amount exceeds said value, the excess is taxed as income from movable capital. If the refund arises from undistributed profits, the total amount received is taxed as income from movable capital. For securities not admitted to trading, the income is limited to the positive difference between the equity value and the acquisition value.

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