Extinction of usufruct and consolidation of ownership
Extinction of usufruct | Effect | Usufructuary | Proprietary knot |
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Due to the death of the usufructuary if it is not successive (lifetime usufruct)(1) |
Automatic consolidation of the domain in the owner node |
Article 33.3.b) of the Personal Income Tax Law : It is estimated that there is no capital gain or loss in lucrative transfers due to the death of the taxpayer. Therefore, it is not taxed in Personal Income Tax |
In the extinction of the usufruct and subsequent consolidation of the domain, the corresponding tax will be required according to the title of constitution of the usufruct.
Does not pay tax in Personal Income Tax due to consolidation . The owner who consolidates ownership will obtain real estate capital returns if he rents or transfers the property or allocation of real estate income (unless it becomes his habitual residence). |
Due to expiration of the term for which it was established if it is for a term (temporary usufruct) |
Automatic consolidation of the domain in the owner node |
A capital loss is generated in the Personal Income Tax for the difference between the transfer value, which will be zero, and the acquisition value ( See acquisition value in the previous table of transmission of usufruct ) | |
By resignation of the usufructuary |
Consolidation of domain in the owner node |
A capital gain or loss is generated in the Personal Income Tax for the difference between the transfer value and the acquisition value (See transfer and acquisition value in the transfer of usufruct) The renunciation of an already accepted usufruct, even if it is pure and simple, will be considered for tax purposes as a donation from the usufructuary to the bare owner. Abatement coefficients ( DT 9 of the Personal Income Tax Law ): They will not be applicable, to the extent that it would not be the transfer of a property element, but rather a waiver of a right, regardless of whether it entails the consolidation of full ownership in the bare owner. |
When the usufruct is extinguished for reasons other than compliance with the term or the death of the usufructuary, the acquirer (the bare owner) must pay tax at the highest value resulting from the settlements that arise from:
Does not pay tax in Personal Income Tax due to consolidation . The owner who consolidates ownership will obtain real estate capital returns if he rents or transfers the property or allocation of real estate income (unless it becomes his habitual residence). |
By meeting of usufruct and bare ownership in a single person for different reasons |
Consolidation of ownership in the usufructuary or in the bare owner derived from a legal transaction (by donation or onerous transfer) |
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Note to the box: (1) The extinction of the usufruct due to the death of the usufructuary does not entail a new acquisition by the person holding the property, but rather it is the legal regime of this real right of enjoyment or enjoyment that establishes that the death of the usufructuary extinguishes it (article 513.1, Civil Code ), the owner recovering the powers of enjoyment of which he had been deprived in its constitution. (Back) |
This table is for informational purposes only.