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V2495-22 2 December 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación de rentas

Free transfer of urban property requires imputation of real estate income for Personal Income Tax

A taxpayer inquired about the taxation of the free transfer of use of several properties to a family member. The DGT ruled that, if the free nature of the transfer is proven, there are no real estate capital returns, but an imputation of income must still be made based on the cadastral value.

The question raised

Taxation in the Personal Income Tax (IRPF) of the consultant for the free transfer of the use of such real estate.

The DGT's ruling

If it is proven that the transfer of urban real estate is free of charge, the transferor does not obtain income from real estate capital. Nevertheless, they must carry out the imputation of real estate income established in Article 85 of the Personal Income Tax Law (LIRPF). The accreditation of the free-of-charge nature is a matter of fact that must be proven by the taxpayer.

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