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V2196-24 14 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Conditions for non-imputation of capital gains in Personal Income Tax upon donation of shares

Taxpayers have enquired whether donating shares in a real estate leasing company to their children allows for the avoidance of capital gains tax under Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) responds that for no capital gain or loss to arise, the requirements set out in Article 20.6 of the Inheritance and Gift Tax Act must be met.

The question raised

Whether the provisions of Article 33.3.c) of the Personal Income Tax Law may be applicable to the donation.

The DGT's ruling

In order for no capital gain or loss to be recognized in the transfer of shares, the requirements of Article 20.6 of Law 29/1987 must be met. This includes that the donor is sixty-five years of age or older, or has an absolute permanent disability or severe invalidity. The application of the exemption in the Personal Income Tax (IRPF) depends on meeting these requirements, regardless of whether the donee applies the reduction or of the regional regulations. If a spouse is under 65 years of age and does not have a disability, they will not be able to apply this exemption.

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