Skip to content
Back to index
V2777-14 15 October 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Contribution of property to a company may be exempt from ITP and AJD and not subject to IRPF under certain conditions

An individual intends to contribute property used in their economic activity to form a limited company. The DGT analyses the implications for IRPF, IIVTNU, and ITP/AJD.

The question raised

Tax consequences in Personal Income Tax (IRPF), in the Tax on the Increase in Value of Urban Land (IIVTNU), and in the Transfer Tax and Stamp Duty (ITP and AJD), specifically, whether settlement would have to be carried out for corporate transactions.

The DGT's ruling

In Personal Income Tax (IRPF), the contribution generates a capital gain or loss, unless the special regime for asset contributions under Corporate Income Tax applies. In the Real Estate Transfer Tax (IIVTNU), the non-accrual depends on the fulfillment of the requirements of the special regime for asset contributions. In Transfer Tax and Stamp Duty (ITP and AJD), the transaction is a corporate transaction that is subject but exempt, which prevents settlement via onerous asset transfers.

Book your free first meeting