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V2252-24 22 October 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Donating part of a property generates a capital gain or loss for Personal Income Tax purposes

A taxpayer inquired about Personal Income Tax (IRPF) implications when donating half of her primary residence to her son. The Directorate General of Taxes (DGT) ruled that the donation results in a capital gain or loss, as it alters the composition of her assets.

The question raised

Taxation of the aforementioned transaction under Personal Income Tax (IRPF).

The DGT's ruling

The donation of an undivided half-share of a dwelling generates a capital gain or loss pursuant to Article 33.1 of the Personal Income Tax Law (LIRPF). The amount is determined by the difference between the acquisition and transfer values, applying the rules for gratuitous transfers under Article 36. If a gain is generated, it shall be included in the savings tax base. Capital losses shall not be recognized if they derive from gratuitous transfers by inter vivos acts.

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