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V2235-23 27 July 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Capital gains or losses in Personal Income Tax when an heir acquires full ownership of an asset by compensating others

A taxpayer inquired whether the adjudication of a property to a single sibling, through financial compensation to the other three, triggers a capital gain. The Directorate General for Taxes (DGT) ruled that, as this constitutes an acquisition of shares rather than a simple division of common property, a change in asset ownership does occur.

The question raised

Taxation under Personal Income Tax (IRPF).

The DGT's ruling

The allocation of real estate to an heir that exceeds their share of participation, through the acquisition of the shares of the other siblings with economic compensation, constitutes a change in assets. This generates for the transferring siblings a capital gain or loss calculated by the difference between the acquisition value (value of the inheritance according to Inheritance Tax) and the transfer value (actual amount of the compensation).

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