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V2115-23 19 July 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pacto sucesorio de definición

No capital gains tax arises from the transfer of assets through a pact of succession by definition

The taxpayer inquires about the Personal Income Tax (IRPF) treatment of the transfer of a plot of land to her son through a pact of succession by definition. The DGT rules that these transfers are exempt from taxation and explains the rules regarding the subrogation of values.

The question raised

Question posed: Personal Income Tax treatment of the transfer.

The DGT's ruling

The transfer of assets through a pact of succession by definition is exempt from taxation pursuant to Article 33.3.b) of the Personal Income Tax Law. Regarding the portion previously acquired by the taxpayer through another succession pact, if the transfer occurs within five years, she shall be subrogated into the position of the deceased regarding the acquisition value and date if such values are lower than those established by the Inheritance and Gift Tax regulations. If subrogation does not apply, the acquisition value shall be the one resulting from the Inheritance and Gift Tax regulations of the original transfer.

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