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Practical manual for Income Tax 2019.

Specific valuation standards

In these cases of transfers of assets in exchange for a temporary or life annuity, the capital gain or loss will be determined by the difference between the following values:

  • Actuarial financial present value of income.
  • Acquisition value of the transferred assets.

Important: If the transferred asset is the habitual residence and the transferor of the same is over 65 years of age or a person in a situation of severe or great dependency, the capital gain that may be derived from this operation is exempt from IRPF

Assets acquired before December 31, 1994

In this case, if a capital gain is obtained, the part of the capital gain generated before January 20, 2006 (the only part to which the reduction or abatement coefficients will be applicable) must be distinguished from that generated after said date, to which the reduction or abatement coefficients are not applicable.

The determination of the capital gain generated prior to January 20, 2006 and the application, where applicable, of the reduction coefficients will be carried out in accordance with the distribution rules discussed in this same Chapter.