Skip to content
Back to index
V2773-20 10 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · régimen de gananciales

Income from a brokerage account may be attributed to the community property regime if ownership is proven

A taxpayer asks how to individualise income and dividends from a foreign brokerage account in their Personal Income Tax (IRPF) return, where they are the sole formal owner but the assets belong to the community property regime. The Directorate General for Taxes (DGT) rules that actual ownership prevails over formal ownership if it can be proven.

The question raised

Being married under the community property regime, the inquiry concerns the individualization in the Personal Income Tax (IRPF) of capital gains and dividends obtained through the aforementioned account.

The DGT's ruling

Income and gains are attributed to the beneficial owners of the assets in accordance with the rules of legal ownership and the matrimonial property regime. Although a taxpayer may appear as the formal owner in a brokerage account, if it is proven that the securities belong to the community property regime, the income shall be attributed 50% to each spouse. The burden of proof to establish such ownership lies with the party seeking to assert that right.

Book your free first meeting