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V3193-23 11 December 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Contributions to protected assets exceeding limits allow for tax base reductions over the following four years

The taxpayer inquires about reducing the tax base through contributions to their son's protected assets and the tax treatment of a loan for renovations. The DGT clarifies that excess contributions can be applied over four years and that loans do not qualify as contributions as they are not gratuitous.

The question raised

1) In the event that the contribution of the housing exceeds the prescribed limits for the reduction of the taxable base, whether it will be possible to continue reducing it in subsequent periods and for how many.

The DGT's ruling

Contributions to protected assets that exceed the limits of 10,000 euros per year per contributor or 24,250 euros per year in aggregate, allow for a reduction of the taxable base in the following four tax periods. Contributions must be made by means of a public document before a notary or a judicial resolution. Money loans do not qualify as contributions to protected assets as they are not gratuitous acts. Rental income from housing integrated into the protected assets constitutes real estate capital income of the owner.

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