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V3508-20 9 December 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Spending on essential needs does not constitute a disposal of assets for protected assets maintenance

A query was raised regarding whether using funds to cover the essential needs of a person with a disability constitutes a disposal of assets that would require the repayment of tax benefits associated with protected assets. The Directorate General for Taxes (DGT) ruled that such expenditure should not be considered a disposal for the purposes of the four-year maintenance requirement.

The question raised

Possibility of applying the contributions made to the aforementioned expenditure.

The DGT's ruling

The expenditure of money and the consumption of fungible goods to meet the vital needs of the beneficiary is not considered a disposal of assets or rights for the purpose of the four-year maintenance requirement under Article 54.5 of the Personal Income Tax Law (LIRPF). However, the expenditure must not prevent the effective establishment and maintenance of the protected assets during that period. The specification of vital needs and the existence of the assets are matters of fact that the taxpayer must prove.

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