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Practical Income Manual 2019.

Assumptions of capital gains that, by express provision of the Personal Income Tax Law, are taxed as income

As assumptions of capital gains that, by express provision of the Personal Income Tax Law , are taxed as income, the following may be cited, among others:

  • Constitution or transfer of rights or powers of use or enjoyment over real estate, which are legally classified as income from real estate capital, or over securities or shares that represent participation in the own funds of an entity, which constitute income from movable capital.

    See, within Chapter 5, the heading "Income obtained from the participation in own funds of any type of entity

  • Transmission, reimbursement, amortization, exchange or conversion of any type of assets representative of the collection and use of foreign capital, which only generate income from movable capital.
  • Results derived from capitalization operations and life or disability insurance contracts, which give rise to income from movable capital, unless they come from social security systems, in which case they give rise to work income.

    The social security systems whose benefits constitute work income are detailed in Chapter 3 of this Manual.