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V2311-20 ·7 July 2020 ·consulta-vinculante Medium impact
Tax

Mortgage cancellation does not affect capital gains calculation when selling a property

A taxpayer inquired about calculating capital gains when selling a property that is not their primary residence, after using part of the proceeds to settle a mortgage. The Directorate General for Taxes (DGT) clarified that the gain is determined by the difference between the acquisition value and the transfer value, without considering the repayment of the debt.

In 6 key points

How it affects those involved

This clarification confirms that mortgage repayments do not reduce the taxable capital gain, as the calculation is based on the historical cost of the asset rather than the net proceeds received after debt settlement.

Lifecycle

2020-07-07PublishedPublished 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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