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V2480-20 21 July 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rentas en especie

Exemption on share delivery lost if not held for three years, even in cases of forced sale

A worker inquired whether the forced sale of their shares before the three-year period allows them to retain the Personal Income Tax (IRPF) exemption. The Directorate General for Taxes (DGT) ruled that the Regulations do not provide for exceptions to the holding period, regardless of the reasons for the sale.

The question raised

Whether the requirement to maintain the share for at least 3 years for the application of the exemption could be understood as fulfilled in the present case, given that it was compulsorily sold before the expiration of said period.

The DGT's ruling

To apply the exemption for the delivery of shares, ownership of said shares must be maintained for at least three years. The Regulation does not establish exceptions to this period nor does it condition non-compliance on the motives that cause it. Upon failure to meet the maintenance period, the right to the exemption provided for in Article 42.3.f) of the Personal Income Tax Law (LIRPF) is lost.

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