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V2644-25 23 December 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gain arises in IRPF from free transfer of plots to local government

A taxpayer asks whether the free transfer of plots to local government following a land subdivision is subject to IRPF. The DGT states there is no capital gain as there is no change in the composition of the estate.

The question raised

Taxation under Personal Income Tax (IRPF) regarding the transfer of roadways.

The DGT's ruling

Mandatory transfers of land to Municipalities constitute urban planning charges of the urbanization process. In this case, upon accepting the inheritance and immediately transferring the land, no alteration in the composition of the taxpayer's assets occurs. Therefore, no capital gain or loss is generated pursuant to Article 33 of the Personal Income Tax Law (LIRPF).

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