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V2296-18 7 August 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · usufructo

Creation of a usufruct over real estate classified as income from real estate capital

A query was raised regarding whether the creation of a usufruct (temporary or life interest, onerous or gratuitous) over real estate constitutes a capital gain or income from real estate capital. The DGT ruled that it is classified as income from real estate capital.

The question raised

Whether the described operation would be classified as a capital gain or as income from real estate capital.

The DGT's ruling

Income derived from the creation of a usufruct right, whether for life or for a fixed term, and whether for consideration or free of charge, over real estate, is classified as income from real estate capital. This is based on the fact that income arising from the ownership of real estate includes that derived from the creation or transfer of rights of use or enjoyment.

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