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V2399-23 6 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Contributions to protected assets exceeding annual limits allow for tax base reductions over the following four years

A mother has requested guidance on how to apply a reduction to the tax base when contributing a property to a protected asset fund for her disabled son, whether through a lump sum or in stages. The Directorate General for Taxes (DGT) clarifies that if the contribution exceeds the annual limits, the excess amount can be applied over the subsequent four tax years, provided that all notary formalities are observed.

The question raised

Question posed: Application of the reduction limit established for contributions to protected assets, in the event of contributing the entirety of the real estate in a single moment and in the case of donating percentages thereof in successive years without exceeding said limit in each year.

The DGT's ruling

Contributions to protected assets allow for a reduction of the taxable base with a limit of 10,000 euros per year per contributor and a maximum of 24,250 euros per year for the group of contributors. If the contribution exceeds these limits, the excess entitles the contributor to reduce the taxable base in the following four tax periods. For these reductions to be valid, the contributions must be made by means of a public document authorized by a notary or a judicial resolution. The reflection of future or unmade contributions in a deed is not valid.

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