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V1364-14 ·21 May 2014 ·consulta-vinculante Medium impact
Tax

Market value must be used as the transfer value if the agreed price is lower

A query was raised regarding which transfer value to apply for Personal Income Tax (IRPF) purposes when a property is sold at a price below market value. The Directorate General for Taxes (DGT) ruled that if the actual amount is lower than the normal market value, the latter shall prevail.

In 6 key points

How it affects those involved

This ruling prevents taxpayers from artificially reducing capital gains by declaring sale prices below market value, ensuring tax compliance based on fair market value.

Lifecycle

2014-05-21PublishedPublished 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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