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V0972-20 ·21 April 2020 ·consulta-vinculante Medium impact
Tax

Taxable base for donations includes the value of buildings constructed on third-party land

A son built a greenhouse on rural land owned by his parents, who now intend to donate the property to him. The Directorate General for Taxes (DGT) has ruled that the taxable base for the donation must be the actual market value of the land combined with the construction.

In 6 key points

How it affects those involved

This ruling clarifies that improvements made to land by a recipient increase the total value of the gift, thereby increasing the tax liability for the donation.

Lifecycle

2020-04-21PublishedPublished 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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