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V0227-19 ·4 February 2019 ·consulta-vinculante Medium impact
Tax

The taxable base of a donation includes the real value of both the land and the building

A father inquired whether he could exclude the value of a building from the taxable base when receiving a donation of a plot of land containing a structure he had built himself. The Directorate General for Taxes (DGT) ruled that the property comprises both the land and the construction, and therefore both must be included in the taxable base.

In 6 key points

How it affects those involved

This ruling clarifies that for gift tax purposes, the total real value of the property, including any improvements or structures, constitutes the taxable base, preventing the exclusion of construction costs from the valuation.

Lifecycle

2019-02-04PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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