Skip to content
Back to index
V1970-18 2 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Donating a property generates a capital gain or loss for Personal Income Tax (IRPF) purposes

A taxpayer has enquired about the Personal Income Tax (IRPF) implications of inheriting a property and subsequently deciding to donate their share to their children. The Directorate General of Taxes (DGT) clarifies that such a donation triggers a capital gain or loss and provides details on how to calculate acquisition and transfer values.

The question raised

Taxation of said donation in the Personal Income Tax (IRPF) return.

The DGT's ruling

The donation generates a capital gain or loss for the donor pursuant to Article 33.1 of the Personal Income Tax Law (LIRPF). The acquisition value for the 50% full ownership shall be the original cost plus expenses, and for the 50% usufruct, it shall be the value derived from the inheritance. The transfer value shall be the fair market value of the donation in accordance with the Inheritance and Gift Tax regulations. If the donor is over 65 years of age or in a state of dependency and the property is their habitual residence, the gain on the full ownership could be exempt.

Book your free first meeting