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V2120-21 ·15 July 2021 ·consulta-vinculante Medium impact
Tax

Acquisition costs and taxes must be included in property valuations for Wealth Tax

A taxpayer inquired whether property valuation for Wealth Tax purposes should be based solely on the purchase price or include associated costs, and whether personal income tax (IRPF) depreciation should be deducted. The Directorate General for Tax (DGT) ruled that costs and taxes inherent to the purchase must be included, but depreciation should not be deducted.

In 6 key points

How it affects those involved

This clarification ensures that the tax base for Wealth Tax reflects the total cost of acquiring an asset, rather than just the net purchase price, while preventing the double deduction of depreciation already accounted for in income tax.

Lifecycle

2021-07-15PublishedPublished 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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