Doctrine by topic · DGT Observatory

Transfer of License: 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 27 rulings · 2014–2025

Current position

The reduction under Article 42.1 of the IRPF (Personal Income Tax) Regulations for the transfer of taxi licenses requires that the sale be motivated by retirement, permanent disability, cessation due to restructuring, or transfer to second-degree relatives. If the holder continues to carry out the activity after retirement or disability, the subsequent transfer is not considered to be motivated by such causes. In such cases, the capital gain is fully subject to IRPF.

The DGT's position has remained constant in its interpretation of the motivation for the transfer. Rulings confirm that the continued exercise of the activity after retirement or disability breaks the causal link necessary to apply the reduction. No changes in criterion are observed, but rather a reiteration of the requirement that the transfer be a direct consequence of the cessation of the activity.

Analysis based on 25 of 27 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

24
V0523-25 28 Mar 2025

Requirements for reducing capital gain from taxi licence transfer

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialestimación objetivaactivos fijos intangiblesreducción de ganancia patrimonialtransmisión de licencia LIRPF — Ley 35/2006 del IRPF art. disposición adicional séptimaReglamento del Impuesto
Affects CompanyExpat · Non-residentIndividual
V0687-22 30 Mar 2022

Disability tax reduction cannot be applied if self-employed taxi activity continues

SG de Impuestos sobre la Renta de las Personas Físicas
estimación objetivaganancia patrimonialactivos fijos intangiblesincapacidad permanentetransmisión de licencia LIRPF — Ley 35/2006 del IRPF art. 37.1.nLIRPF — Ley 35/2006 del IRPF art. disposición adicional séptima
Affects CompanyExpat · Non-residentIndividual
V1429-21 14 May 2021

Retirement tax reduction unavailable for taxi licence transfer if activity continues

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialactivos fijos intangiblesestimación objetivatransmisión de licenciajubilación LIRPF — Ley 35/2006 del IRPF art. 37.1.nLIRPF — Ley 35/2006 del IRPF art. disposición adicional séptima
Affects CompanyExpat · Non-residentIndividual
V3111-17 30 Nov 2017

Retirement tax relief maintained on taxi licence transfers if activity is not restarted

SG de Impuestos sobre la Renta de las Personas Físicas
estimación objetivaganancia patrimonialactivos fijos intangiblesreducción por jubilacióntransmisión de licencia LIRPF — Ley 35/2006 del IRPF art. 37.1.nLIRPF — Ley 35/2006 del IRPF art. disposición adicional séptima
Affects CompanyExpat · Non-residentIndividual

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