8.2.6.2.4.3. Transfer value: unaffected elements
Transfer value (Unaffected elements)
After indicating the dates of transmission and acquisition, you must provide the following information:
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Transfer amount
As a general rule, actual amount for which sale was made will be recorded.
The actual amount of the sale value will be taken as the amount actually paid, provided that it is not less than the normal market value, in which case the latter will prevail.
When the transfer has been for profit (inheritance or donation), the actual amount will be taken as the amount resulting from the application of the rules of the Inheritance and Gift Tax.
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Value for the purposes of the 2005 wealth tax (exclusively for securities traded on organised markets acquired before 31-12-1994)
The value will be recorded for the purposes of the 2005 Wealth Tax. This value will be the average trading value corresponding to the fourth quarter of 2005, as set out in Order EHA/492/2006 of the Ministry of Economy and Finance, dated 17 February. The value that should be reflected will be the result of multiplying the number of shares by their unit value.
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Transmission costs
The expenses and taxes inherent to the transfer will be recorded as soon as they are paid by the transferor.
The result will be obtained from the difference in the global amounts of the transfers made in the year, indicating whether any of said transfers are applied to the creation of life annuities for taxpayers over 65 years of age, or affected by the application of the corrective coefficients, and the global amount of the acquisitions.
You must check the corresponding boxes when transferring assets if they are affected by the reduction coefficients for acquisitions made before December 31, 1994. And if, for each element, you want to exhaust the existing limit of 400,000 euros to be able to apply these coefficients.
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Forward operations: amount collected in 2019 (art. 14.2.d) Law)
Transactions with deferred price or installment payments are considered to be those whose price is received, in whole or in part through successive payments, provided that the period between delivery or availability and the expiration of the last installment is greater than year.
In the case of installment or deferred price transactions, the taxpayer may choose to proportionally allocate the income obtained from such transactions, as the corresponding payments become due.
If the transaction is an installment or deferred payment transaction, the box provided for this purpose will be checked and the portion of the transfer amount collected in 2019 will be indicated, unless the decision is made to allocate the entire capital gain or loss at the time of the transfer. Additionally, you must complete the boxes corresponding to the number of years in which you will receive payment (excluding 2019), the year in which you will receive the last payment, the year in which you will receive the pending payments (up to a maximum of 4) and the amount to be collected in each of them. (If the number of years is greater than 4, the amounts pending collection will be reflected in the box provided for this purpose). This information will be transferred by the program to Annex C1 of the declaration.
The exercise of the action for the temporary imputation of the application of the deferred collection criterion must be carried out element by element by checking the box enabled for this purpose that corresponds to the asset.
If the transaction was made in cash, this box must be left blank.
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Reinvestment exemption (main residence)
When the capital gain comes from the sale of the habitual residence and the amount obtained from the transfer is fully or partially reinvested in the acquisition of another habitual residence, the amount reinvested or to be reinvested must be reflected, provided that the conditions established by regulation to exempt the gain derived from the sale from taxation are met.
The program will calculate the capital gain obtained and the exempt amount, and will transfer the data to the corresponding section.
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Reinvested amount:
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Amount reinvested until 31-12-2019
The amount reinvested during 2019 in the acquisition of a new primary residence will be reflected.
The reinvestment must be made, in one go or successively, over a period of no more than two years.
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Amount committed to reinvest, after 2019, in the following two years
The amount that the applicant agrees to reinvest in the two years following the transfer of the previous property will be recorded.
The reinvestment will be deemed to be carried out within the term when the sale was made in installments or with a deferred price, provided that the amount of the installments is used for the indicated purpose within the tax period in which they are received.
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Loan for the acquisition of the transferred home pending amortization:
If the taxpayer used external financing to acquire the transferred property, the principal amount of the loan that is pending repayment at the time of the transfer will be indicated in this box.
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Transfer of assets by taxpayers over 65 years of age with reinvestment of the amount obtained in life annuities
Capital gains arising from the transfer of assets by taxpayers over 65 years of age are exempt from tax, provided that the total amount obtained from the transfer is used to create an insured life annuity in their favor.
Please note that the exemption for reinvestment in life annuities is also applicable to capital gains derived from the transfer of assets assigned to economic activities, as well as those obtained through entities in the attribution of income when the member of the entity makes the reinvestment in compliance with the required conditions.
Reinvestment period
The life annuity must be established within six months from the date of transfer of the asset.
However, when the capital gain is subject to withholding and the transfer value reduced by the amount of the withholding is entirely used to create a life annuity within the aforementioned six-month period. The deadline for allocating the amount of the withholding, if applicable, to the creation of the life annuity will be extended until the end of the year following that in which the transfer is made.
Conditions and requirements for applying the exemption
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The life annuity contract must be signed between the taxpayer, who will be the beneficiary, and an insurance company.
In life annuity contracts, reversal mechanisms or certain benefit periods or counter-insurance formulas may be established in the event of death once the life annuity has been established.
In order to ensure that the application of the exemption from reinvestment gains provided for in article 38.3 of the Personal Income Tax Law complies with the intended purpose, contracts entered into after April 1, 2019, in which reversal mechanisms, certain benefit periods or counter-insurance formulas in the event of death are established, must comply with the following requirements (Additional Provision nine of the Law):
- In the case of reversal mechanisms in the event of the death of the insured, there may only be one potential beneficiary of the reversing life annuity.
- In the case of certain benefit periods, said periods may not exceed 10 years from the establishment of the life annuity.
- In the case of counter-insurance formulas, the total amount to be received upon the death of the insured may at no time exceed certain percentages with respect to the amount allocated to the creation of the life annuity.
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The life annuity must have a periodicity of less than or equal to one year, beginning to be received within one year from its establishment, and the annual amount of the income may not decrease by more than five percent compared to the previous year.
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The taxpayer must inform the insurance company that the life annuity being contracted constitutes the reinvestment of the amount obtained from the transfer of assets, for the purposes of applying the exemption provided for in this article.
Maximum reinvestment limit
The maximum total amount that can be reinvested in the creation of life annuities that will give rise to the right to apply the exemption will be 240,000 euros.
If, as a result of the reinvestment of the amount of a transfer in a life annuity, taking into account previous reinvestments, the amount of 240,000 euros is exceeded, only the amount of the difference between 240,000 euros and the amount of previous reinvestments will be considered reinvested.
Partial reinvestment
When the reinvested amount is less than the total amount received in the transfer, only the proportional part of the capital gain obtained that corresponds to the reinvested amount will be excluded from taxation.
Reinvestment in a year other than that of disposal
When the reinvestment is not carried out in the same year of the sale, the taxpayer will be obliged to state in the declaration for the year in which the capital gain is obtained his intention to reinvest under the conditions and time periods indicated, completing the corresponding section for this purpose.
Non-compliance with the conditions of the total or partial advance reinvestment of the economic rights derived from the established life annuity
Failure to comply with any of the conditions established in this article, or the advance, in whole or in part, of the economic rights derived from the established life annuity, will determine the subjection to taxation of the corresponding capital gain.
In such case, the taxpayer will impute the non-exempt capital gain to the year in which it was obtained, making a supplementary self-assessment, including late payment interest, and will submit it within the period between the date on which the non-compliance occurs and the end of the regulatory declaration period corresponding to the tax period in which said non-compliance occurs.
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Repurchase operations of the transferred item
This box will be checked if the transfer gives rise to a loss and the transferred assets (or homogeneous securities) have been reacquired within the time periods and conditions provided for in article 33.5, letters e), f) and g) of the Tax Law, since the capital loss should not be computed until the subsequent definitive transfer of the reacquired assets (or homogeneous securities) takes place. However, the loss must be declared and quantified in the declaration for the year in which it was generated, even if it is not included for liquidation purposes.
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Capital gains obtained from the transfer of urban properties acquired for valuable consideration between May 12 and December 31, 2012
You must check the corresponding box if the profit produced is from the sale of an urban property acquired between the dates of May 12, 2012 and December 31, 2012.