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V2484-17 4 October 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · transmisiones patrimoniales

Loans between individuals are exempt from ITPAJD but require a tax return

An individual inquired about the legality of an interest-free loan between unrelated parties. The DGT clarified that although the loan is exempt from this tax, the borrower is still obliged to file the corresponding tax return.

The question raised

First question raised. Whether it is in accordance with the law for independent parties to agree on an interest-free loan, given that no link of any kind exists between the interested parties from a tax perspective.

The DGT's ruling

The establishment of a loan is a transaction subject to the onerous transfer of assets modality of the ITPAJD. However, loans are exempt from the tax according to the recast text. Notwithstanding the exemption, the borrower is obliged to file the tax return, unless the regulations of the competent Autonomous Community establish otherwise.

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