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V2245-18 26 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · usufructo vitalicio

Creation of a life usufruct in exchange for shares is taxed as income from real estate capital

An individual establishes a life usufruct over an industrial warehouse in favour of a company in exchange for additional shares. The DGT has ruled that this transaction does not qualify for the Corporate Tax deferral regime.

The question raised

Application of the tax deferral regime regulated in Chapter VII of Title VII of the Corporate Tax Law.

The DGT's ruling

The establishment of a life usufruct over real estate in exchange for an increased shareholding in a company is classified as income from real estate capital. As it is income and not a capital gain, it is not possible to apply the Corporate Tax deferral regime provided for in Chapter VII of Title VII of the Corporate Tax Law.

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