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V0348-23 ·20 February 2023 ·consulta-vinculante Medium impact
Tax

Outstanding mortgage loan cannot be deducted from the transfer value of a property

A taxpayer inquired whether the outstanding mortgage debt can be subtracted from the sale price of a property when calculating capital gains. The Directorate General for Taxes (DGT) ruled that the loan amount does not constitute an inherent expense of the transfer.

In 5 key points

How it affects those involved

This ruling clarifies that mortgage debt is a financing matter and cannot be used to reduce the taxable capital gain arising from the sale of real estate.

Lifecycle

2023-02-20PublishedPublished 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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