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V3114-19 7 November 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · imputación temporal

Capital gains from property sales must be reported in the period the public deed is executed

A taxpayer inquired which tax year should be used to declare capital gains from a property sale if a private contract was signed in 2019 but the public deed was executed in 2020. The Directorate General for Taxes (DGT) ruled that the gain must be reported in the period when the transfer of assets occurs.

The question raised

To which tax period should the capital gain obtained from the transfer of the dwelling be attributed.

The DGT's ruling

The capital gain or loss must be attributed to the tax period in which the change in assets occurs, that is, at the time of the delivery of the goods. According to the Civil Code, the execution of a public deed is equivalent to the delivery of the thing, unless the contrary is deduced from it. Therefore, the gain must be understood as having occurred in the period in which the public deed is executed.

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