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V3128-16 5 July 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del capital inmobiliario

Transferring a commercial premises in exchange for covering expenses generates real estate income and is subject to VAT

A query was raised regarding the taxation of the transfer of a commercial premises from a mother to her son, where the latter assumes the costs of property tax (IBI), community fees, and electricity. The DGT has determined that this does not constitute a gratuitous transfer, but rather an onerous one, which generates real estate capital income and is subject to VAT.

The question raised

Regarding the effects of Personal Income Tax, a consultation is made concerning the taxation of the assignment and the deductibility of expenses for the purpose of determining the net income of the economic activity and, for the purposes of Value Added Tax, regarding the liability for the same of the assignment of the premises.

The DGT's ruling

When the assignee assumes the expenses of the property, the amount of said expenses is computed as gross income from real estate capital for the assignor, which are deductible for her. Due to the kinship, the calculation of minimum income by imputation of rents must be applied. Furthermore, as it is an onerous assignment, the assignor acts as a professional and the operation is subject to VAT at 21%.

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