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V3227-19 25 November 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Real estate transfers are attributed to the tax year in which delivery or tradition of the property occurs

A resident in Spain inquired when they must declare capital gains from the sale of a property in Hungary if the private contract is signed in one year, but delivery and payment take place the following year. The Directorate General for Taxes (DGT) ruled that the transfer occurs upon delivery of possession, rather than upon the signing of the contract.

The question raised

Temporal imputation of the capital gain that may be generated in the transfer of real estate.

The DGT's ruling

The capital gain or loss is imputed to the tax period in which the change in assets occurs. The transfer of ownership does not occur by the mere perfection of the contract, but requires the tradition or delivery of the thing. For real estate, delivery may be the granting of possession, the handing over of keys, or the execution of a public deed. Therefore, the date of transfer is the date of the effective delivery of the real estate.

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