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V2263-14 4 September 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Reduction under the ninth transitional provision may apply when selling part of a property acquired in 1985

A query was raised regarding whether an owner of a share in a property acquired in 1985 can apply the transitional regime of the Personal Income Tax (IRPF) Law when selling their percentage. The Directorate General for Taxes (DGT) confirms that it is possible to apply said reduction to the capital gain generated prior to 2006.

The question raised

Possibility of applying the ninth transitional provision of the Personal Income Tax Law in the event that the owner of the portion of the property acquired in 1985 transfers the same.

The DGT's ruling

The owner of a portion of a property acquired in 1985 may apply the ninth transitional provision to calculate the capital gain, provided that the property is not used for economic activities or has been decommissioned more than three years in advance. This reduction applies to the portion of the gain generated prior to January 20, 2006.

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