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V2276-20 6 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · alteración patrimonial

Transfer of real estate via judicial auction occurs upon the adjudication decree for Personal Income Tax purposes

A taxpayer inquired as to when a change in assets occurs following the transfer of a commercial premises. The DGT ruled that a transfer is perfected upon delivery or tradition, and in the case of judicial auctions, upon the issuance of the adjudication decree.

The question raised

When the change in net worth occurred for Personal Income Tax purposes.

The DGT's ruling

The transfer of ownership does not occur through the mere perfection of the contract, but requires delivery to transfer legal possession. In transfers via judicial auction, the transfer of the asset must be understood as having occurred with the adjudication decree. Therefore, the capital gain or loss must be imputed to the tax year in which said decree was issued.

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