Skip to main content
Practical Handbook for Companies 2021

Exemption of income derived from the transfer of certain properties

According to sixth additional provision of the LIS, the following will be exempt at 50 per cent the positive income derived from the transfer of urban real estate assets that have the status of non-current assets or that have been classified as non-current assets held for sale and that have been acquired for consideration from 12 May 2012 and until 31 December 2012, without the amount of the impairment losses relating to the real estate, nor the amounts corresponding to the reversal of the excess depreciation that has been tax deductible in relation to the depreciation recorded, forming part of the income entitled to the exemption.

Excluded from the application of the sixth additional provision of the LIS are the cases of real estate acquired or transferred by persons or entities with certain corporate (Article 42 of the Commercial Code) or kinship ties, as indicated therein.

Filling in form 200

Taxpayers entitled to this exemption must include in the box [00519] "Exemption transfer of real estate (DA 6ª LIS)" on page 13 of form 200, the 50 per cent of the positive income derived from the transfer of the real estate (not excluded from the application) referred to, without the impairment losses relating to such transferred real estate forming part of this income, nor the amounts corresponding to the reversal of the excess depreciation that has been tax deductible in relation to the depreciation accounted for.