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An association has requested clarification on how to determine the tax base for declarations of new construction and new horizontal division of a building. The Directorate General for Taxes (DGT) clarifies that the construction cost must be the original actual value without updates, whereas the land value must be the current value at the time of accrual.
This ruling clarifies the valuation methods for tax purposes in new developments, distinguishing between construction costs and land value to ensure correct tax base calculation.
The tax team reviews your specific situation.
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