Skip to content
Back to index
V2941-16 23 June 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · operaciones vinculadas

Transactions between related parties must be valued at market value

A lawyer, partner and manager freely transfers part of his premises and provides administrative services to his company. The DGT rules that transactions between related parties must be valued at market value and examines their treatment in IRPF and IVA.

The question raised

Tax treatment of said operation in Personal Income Tax and Value Added Tax.

The DGT's ruling

The free transfer of a premises used for professional activity is subject to VAT as self-consumption of services. For Personal Income Tax purposes, the income from the transfer of the real estate is considered income from real estate capital. The services provided by the partner may be considered income from economic activity if the requirements of the Personal Income Tax Law are met and the partner is registered in the self-employed regime, or alternatively, income from employment if said requirements are not met. For VAT purposes, the taxability of the services depends on whether the partner acts independently or under subordination, analyzing their working conditions, remuneration, and responsibility.

Book your free first meeting