Doctrine by topic · DGT Observatory

Reduction Coefficients: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 16 rulings · 2014–2024

Current position

The reduction coefficients of the Ninth Transitional Provision of the Personal Income Tax Law (LIRPF) apply to assets not used for economic activities acquired before December 31, 1994. In the case of real estate, assets are considered used for economic activities if they are rented through a business lease, which prevents the application of the reduction. For social shares, fully bonus capital increases maintain the seniority of the original securities for the calculation of the acquisition value.

The DGT's position remains constant regarding the application of the Ninth Transitional Provision, focusing its analysis on the nature of the asset's use for economic activities. It has been specified that a business lease constitutes an economic activity and excludes the benefit of the coefficients. Likewise, the continuity of seniority in fully bonus capital increases is confirmed.

Turning points

  1. V0501-19

    Establishes that the leasing of an economic unit with its own life constitutes an economic activity, which prevents the application of the reduction coefficients.

  2. V1295-24

    Specifies that assets are considered not used for economic activities if the cessation of use occurred more than three years prior to the transfer.

Analysis based on 15 of 16 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

16
V2266-24 23 Oct 2024

Reduction coefficients may apply to the sale of shares acquired before 1994

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialampliación de capital liberadavalor de adquisicióncoeficientes reductorestransformación societaria LIRPF — Ley 35/2006 del IRPF art. 33LIRPF — Ley 35/2006 del IRPF art. 35
Affects CompanyExpat · Non-residentIndividual
V2265-24 23 Oct 2024

Reduction coefficients may apply to the transfer of shares acquired before 1994

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialampliación de capital liberadavalor de adquisicióncoeficientes reductoressociedad cooperativa LIRPF — Ley 35/2006 del IRPF art. 33LIRPF — Ley 35/2006 del IRPF art. 35
Affects CompanyExpat · Non-residentIndividual
V2264-24 23 Oct 2024

Reduction coefficients may apply to the sale of shares acquired before 1994

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialampliación de capitalacciones totalmente liberadascoeficientes reductoresvalor de adquisición LIRPF — Ley 35/2006 del IRPF art. 33LIRPF — Ley 35/2006 del IRPF art. 35
Affects CompanyExpat · Non-residentIndividual
V0102-21 28 Jan 2021

Leasing a business means properties are considered tied to an economic activity

SG de Impuestos sobre la Renta de las Personas Físicas
arrendamiento de negocioelementos patrimoniales afectosactividad económicarendimientos de capital mobiliarioganancia patrimonial LIRPF — Ley 35/2006 del IRPF art. 25.4.cLIRPF — Ley 35/2006 del IRPF art. 27.2
Affects CompanyExpat · Non-residentIndividual
V1376-20 12 May 2020

Minimum for ascendants may apply if conditions met

SG de Impuestos sobre la Renta de las Personas Físicas
mínimo por ascendientesganancia patrimonialrentas anualesperiodo impositivodevengo del impuesto LIRPF — Ley 35/2006 del IRPF art. 17.2.aLIRPF — Ley 35/2006 del IRPF art. 18
Affects CompanyExpat · Non-residentIndividual
V0225-17 31 Jan 2017

DT 9 LIRPF reduction may apply to primary residence and part of a garage space

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialdisposición transitoria novenacoeficientes reductoresvalor de transmisiónelementos patrimoniales LIRPF — Ley 35/2006 del IRPF art. 33LIRPF — Ley 35/2006 del IRPF art. 35
Affects CompanyExpat · Non-residentIndividual

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