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V1962-20 16 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · usufructo vitalicio

Free renunciation of usufruct triggers capital gains tax in IRPF and taxation in ISD

A mother gratuitously renounces the life usufruct of inherited assets in favour of her children. The DGT indicates that this generates capital gains or losses for IRPF purposes and must be taxed under Inheritance and Gift Tax.

The question raised

Taxation of the referred operation.

The DGT's ruling

The gratuitous renunciation of usufruct produces a change in assets that generates capital gains or losses for Personal Income Tax purposes, which are integrated into the savings base. The acquisition and transfer values shall be determined according to the rules of the Inheritance and Gift Tax. If losses are incurred through lucrative transfers, these shall not be deductible. For Inheritance and Gift Tax purposes, the pending assessment for the dismemberment of ownership must be compared with that of the legal transaction of the donation, and the higher amount shall be taxed.

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