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V3217-20 28 October 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · donación

Joint liability in a mortgage loan for a wife's separate property may constitute a gift

A husband is listed as a co-borrower in a mortgage loan for the purchase of a flat that will be the exclusive property of his wife. The DGT examines whether the payments made by the husband constitute a gift or if they can be classified as a private loan.

The question raised

Taxation of the transaction.

The DGT's ruling

If the husband contributes to the payments of the bank loan for his wife's housing, each payment is considered a donation on the part of the payer. However, if the wife undertakes to repay that money to the husband, the transaction is classified as a second loan from the husband to the wife. In the latter case, the repayment of the money does not generate a new taxable event, provided that the existence of said loan is proven.

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