Donating part of the primary residence to a spouse: impact on Personal Income Tax

The transfer of part of the ownership of a primary residence to a spouse through a donation carries tax implications that must be analyzed with precision. The Dirección General de Tributos (DGT) has recently clarified the treatment of these operations in Personal Income Tax (IRPF).

What the DGT has ruled

The ruling addresses the tax treatment of the donation of part of a property intended as a primary residence to a spouse. The criteria establish that such an operation generates a change in assets that results in a capital gain or loss, in accordance with the provisions of Article 33.1 of the IRPF Law.

To determine the result of the operation, the difference between the acquisition and transfer values must be applied, following the rules for lucrative transfers established in Article 36 of the current regulations. It is important to highlight that, should the operation result in a capital loss, this will not be computable for the taxpayer, as it constitutes a lucrative transfer through inter vivos acts.

What it means for you

If you decide to donate part of your primary residence to your spouse, you must consider that the operation is not tax-neutral. If there is a capital gain, it must be included in the donor's savings tax base. This implies that the value of the transferred part will be compared with its acquisition value to calculate the resulting economic benefit.

What should be done

In such a situation, it is necessary to evaluate the asset situation of both spouses and the impact that including the gain in the savings base will have on their tax return. It is recommended to analyze the acquisition values and the transfer values before formalizing the act to understand the potential tax burden. Each scenario requires an individualized assessment of the technical data and the applicable regulations.