Skip to main content
Practical manual for Income Tax 2023.

Capital gains not subject to personal income tax

Capital gains subject to inheritance and gift tax

Regulations: Art. 6.4 Law PIT

It is declared not subject to it PIT, to avoid double taxation on the same, capital gains derived from the acceptance of donations, inheritances or legacies because they are subject to the Inheritance and Gift Tax-

Part of the capital gains generated before January 20, 2006 derived from assets acquired before December 31, 1994 .

Regulations: ninth transitional provision of the Law PIT

It is not subject to the PIT the part of the capital gain (not the losses) generated prior to 20 January 2006 derived from assets not assigned to economic activities that on 31 December 1996 had remained in the taxpayer's assets for a period of time, rounded up, greater than:

  • 5 years , in the case of shares admitted to trading on any of the official secondary securities markets defined in Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments and representing equity participation in companies or entities, with the exception of shares representing the share capital of Real Estate and Mutual Funds Companies.

    Note that Directive 2004/39/EC referred to in the ninth transitional provision of the Law on PIT It has been repealed with effect from 3 January 2017 by Directive 2014/65/ EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments. This, in its article 94, provides that references to Directive 2004/39/EC will be understood as references to Directive 2014/65/EU.

  • 10 years , if it concerns real estate and rights thereto or securities of the entities included in the current article 338 of Law 6/2023, of March 17, on Securities Markets and Investment Services ( BOE of March 18), with the exception of shares or participations representing the share capital or assets of Real Estate Investment Companies or Funds.

    Article 108 of Law 24/1988, of July 28, on the Securities Market, together with the rest of its provisions, was incorporated into the consolidated text of the Securities Market Law, approved by Royal Legislative Decree 4/2015, of October 23. The latter has been repealed by Law 6/2023, of March 17, on Securities Markets and Investment Services ( BOE of March 18), although the content of the aforementioned article 108 of Law 24/1988 has been incorporated into Law 6/2023, specifically and with regard to said provision, reference must be made to its article 338.

  • 8 years , for the rest of the assets and rights.

Note: Since 1 January 2015, a maximum and overall limit of 400,000 euros has been established for all assets to which the above applies, which operates on the transfer value. Its application is discussed in the section " Determination of the amount of capital gains or losses " of this chapter.