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V3159-14 26 November 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · traspaso de local

Income from the transfer of a business premises is taxed as a capital gain for Personal Income Tax purposes

An individual ceasing their economic activity has enquired about the tax treatment of the amount received for the transfer of their leased business premises. The Directorate General for Taxes (DGT) has ruled that this amount constitutes a capital gain.

The question raised

Tax treatment of the amount received as a transfer fee in Personal Income Tax.

The DGT's ruling

The leasehold right is an element of intangible assets used in the activity. The amount received for the transfer generates a capital gain, after deducting the amount corresponding to the owner. If the right was acquired for a price, this shall be the acquisition cost. The inclusion in the taxable base will depend on whether more than one year has elapsed since the signing of the contract.

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