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V2271-20 ·3 July 2020 ·consulta-vinculante Medium impact
Tax

Earthworks and land levelling considered an improvement to the land's acquisition value

A farmer inquired whether expenses related to earthworks and levelling prior to the construction of a greenhouse are deductible. The DGT ruled that these costs must be treated as an improvement to be incorporated into the acquisition value of the land.

In 6 key points

How it affects those involved

This ruling clarifies that land preparation costs cannot be treated as immediate expenses but must instead be capitalised as part of the land's acquisition cost.

Lifecycle

2020-07-03PublishedPublished 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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