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Surrender of property as payment of debt

Requirements for tax exemption

Capital gains in which the following circumstances occur are exempt from IRPF :

  1. When they are established at the time of the transfer of the debtor's or the debtor-guarantor's main residence.

  2. When the transfer of the residence is carried out through a dation in payment, or in a judicial or notarial foreclosure.

  3. When the purpose of such is the cancellation of debts guaranteed with a mortgage pertaining to the main residence, contracted with credit institutions or any other entity that professionally carries out the activity of granting loans or mortgages.

  4. In any case, the owner of the main residence must not have other goods or rights that could satisfy the total amount of the debt and prevent the alienation of the property.