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A taxpayer has enquired whether the sale of land urbanised by the City Council allows for the application of reduction coefficients. The DGT has ruled that, as the owner is not engaged in real estate development as an economic activity, the sale is classified as a capital gain.
This ruling clarifies the distinction between capital gains and business income for landowners, specifically regarding land urbanised through municipal management without the owner acting as a developer.
The tax team reviews your specific situation.
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