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V2038-20 ·19 June 2020 ·consulta-vinculante Medium impact
Tax

Taxable base for new build declarations is construction cost, excluding land value

A query was raised regarding the taxable base in deeds for new build declarations, the grouping of estates, and the taxation of horizontal division alongside the dissolution of co-ownership. The DGT clarifies that new builds do not include the land value, whereas the grouping of estates must include both the land and the structure.

In 6 key points

How it affects those involved

This ruling clarifies the distinction between construction costs and land value for tax purposes, providing certainty for property developers and legal professionals regarding the calculation of the taxable base in various property restructuring scenarios.

Lifecycle

2020-06-19PublishedPublished 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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