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V2653-23 29 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Capital gains from property sales are attributed based on legal ownership rather than the amount received

A query was raised regarding whether capital gains from the sale of a property should be calculated based on the cash received by each co-owner or according to their percentage of ownership. The Directorate General for Tax (DGT) ruled that gains are attributed according to the legal ownership of each owner, regardless of how the proceeds are distributed.

The question raised

Whether the capital gain obtained by each co-owner in the sale must be calculated based on the amount actually received by each co-owner, or based on the amount that would have corresponded to each one according to their percentage of ownership of the asset sold.

The DGT's ruling

Capital gains or losses are imputed to the owners in proportion to the percentage of ownership held by each. This applies regardless of whether the owners decide to distribute the amount obtained differently, transfer it gratuitously to others, or assign it any other purpose. If a co-owner transfers part of their share of the amount to another, such transfer could be subject to Inheritance and Gift Tax.

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