Skip to content
Back to index
V3073-21 7 December 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gains or losses shall be recognised on the donation of a company if ISD requirements are met

An individual over the age of 65 has enquired whether they can apply the capital gains exemption when donating their agricultural business to their children. The DGT has ruled that this is applicable provided the requirements of Article 20.6 of the Inheritance and Gift Tax Law are satisfied.

The question raised

Whether the provisions of Article 33.3.c) of the Personal Income Tax Law are applicable to the donation.

The DGT's ruling

The non-existence of capital gains or losses in the gratuitous transfers of businesses or holdings referred to in Article 20.6 of Law 29/1987 is estimated. To this end, the assets must have been used for the purpose of the business continuously for at least five years prior to the transfer. Compliance with these requirements is independent of whether the donee applies or not the reduction in the Inheritance and Gift Tax.

Book your free first meeting