Bare owners cannot update the acquisition value following the death of the usufructuary

The determination of the acquisition value is a decisive factor in calculating capital gains or losses for Personal Income Tax (IRPF). A recurring question arises when the usufructuary of an asset passes away, raising the issue of whether this event allows for the updating of the bare ownership value to reduce the tax burden in a future sale.

What the DGT has ruled

The Dirección General de Tributos (DGT) has ruled that the death of the usufructuary does not alter the acquisition date of the bare ownership. According to the established criteria, the acquisition value of the bare ownership must be the one that corresponded at the time the acquisition of said right occurred, and not the value resulting from the extinction of the usufruct due to death.

The resolution is based on IRPF regulations and the Civil Code, establishing that the extinction of the usufruct due to death does not constitute a new taxable event nor an update of the values of the elements that comprise the property. Therefore, the bare owner maintains the original date of acquisition for the calculation of capital gains.

What this means for you

If you are the holder of the bare ownership of an asset and the usufructuary passes away, the consolidation of full ownership does not grant you the possibility of using a higher acquisition value based on the date of death. This implies that, at the time of selling the asset, the calculation of capital gains will be carried out using the value that the bare ownership had at the moment you originally acquired it.

This scenario may result in a higher taxable base for IRPF if the difference between the sale value and the original acquisition value is high, as the value update that the death of the usufructuary would imply cannot be applied.

What is advisable to do

In this situation, it is necessary to perform a detailed analysis of the original acquisition date and value of the bare ownership. It is essential to have the documentation that proves said value to avoid errors in the tax settlement. Since the regulations are strict on this point, it is recommended to assess each particular situation to understand the tax impact that the future transfer of the asset will have.