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V4983-16 17 November 2016 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · usufructo

Transfer of share usufruct by non-monetary contribution creates gain or loss

The consultant asks how to tax the transfer of share usufruct of a foreign company acquired by inheritance. The DGT states that selling the usufruct generates a capital gain or loss, which must be calculated by separating the value of the usufruct from that of the bare ownership.

The question raised

Taxation of the aforementioned transfer in the Personal Income Tax (IRPF) of the taxpayer.

The DGT's ruling

The sale of the usufruct generates a capital gain or loss pursuant to Articles 33 et seq. of the Personal Income Tax Law (LIRPF). Given the dismemberment of ownership, it must be determined which part of the transfer value corresponds to the usufruct and which to the bare ownership according to its market value. In the event of a non-monetary contribution, the transfer value shall be the highest of the three options provided for in Article 37.1.d) of the LIRPF. The acquisition value for the usufruct and the bare ownership shall be determined according to the rules of the Inheritance and Gift Tax.

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