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V3474-20 1 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · usufructo

Usufruct donors must impute a minimum net yield if the transferee is a relative

A query was raised regarding the taxation of the donation of usufruct rights over a property from a father to his daughter. The DGT indicates that, if the gratuitous nature of the transfer is proven, the donor must impute the net yield provided for in Article 85 of the IRPF Law.

The question raised

A request is made to determine the taxation for Personal Income Tax purposes regarding the aforementioned operation.

The DGT's ruling

The establishment of a usufruct generates a return on real estate capital that must be valued at normal market price. If the gratuitous nature of the donation is proven, the donor shall impute the net return established in Article 85 of the Personal Income Tax Law (LIRPF). In the event that the gratuitous nature is not proven, the normal market value shall apply, provided that the return cannot be lower than that of Article 85 if the transferee is a relative up to the third degree.

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