Temporary usufruct of shares is taxed as income from movable capital

The Directorate General of Taxes (DGT) has clarified the tax treatment applicable when a temporary usufruct on shares is established. This resolution addresses the nature of the rights of use and enjoyment over securities representing participation in equity and its impact on Personal Income Tax (IRPF) returns.

What the DGT has resolved

The body has determined that the establishment of rights of use or enjoyment over securities representing participation in equity is classified as income from movable capital, in accordance with Article 25.1.c) of the LIRPF. As it is a transaction carried out for profit, the regulations establish the presumption that said transaction is remunerated, pursuant to Article 6.5 of the aforementioned law.

In this sense, the valuation of such remuneration must be carried out according to the normal market value, following the provisions of Article 40.1 of the LIRPF. The resolution also adopts the position of the Supreme Court jurisprudence, which confirms that this remuneration must be integrated as income from movable capital and not as an increase in net wealth.

What it means for you

If you are an individual who decides to establish a temporary usufruct on your shares, you must take into account that this action generates a tax obligation in the IRPF. It is not a mere transfer of rights, but an operation that the Administration considers remunerated by default.

This implies that the market value of that usufruct must be integrated into your taxable base as income from movable capital. The distinction is fundamental, as it prevents the operation from being treated as an increase in wealth, which alters the way the resulting tax burden is calculated.

What should be done

When establishing this type of right over securities, it is necessary to perform a technical valuation that reflects the normal market value to comply with current regulations. Since the presumption of remuneration is the rule, the correct determination of the amount is essential for the integrity of the income tax return. It is recommended to assess each particular situation to determine the exact impact on the taxpayer's taxable base.