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V2565-22 19 December 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pensión compensatoria

Reduction for compensatory allowance may be applied through the transfer of real estate

A taxpayer inquired whether transferring a parking space to offset the economic imbalance following a divorce allows for the application of the compensatory allowance reduction in Personal Income Tax (IRPF). The Directorate General of Taxes (DGT) ruled that this is possible and that the value of said allowance shall be the market value of the asset.

The question raised

Whether the reduction established in Article 55 of the LIRPF may be applied for the payment of compensatory pension satisfied to a spouse, and the valuation of said compensatory pension.

The DGT's ruling

The substitution of a judicially determined pension with the transfer of capital in kind allows for the application of the reduction provided in Article 55 of the Personal Income Tax Law (LIRPF). In the case of the transfer of real estate, the valuation of the compensatory pension shall be its market value pursuant to Article 43 of the Tax Law. The transfer of a portion of the asset exceeding the ownership share will generate a capital gain or loss for the transferor.

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