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V3269-20 ·30 October 2020 ·consulta-vinculante Medium impact
Tax

Debts of the homeowners' association paid by the purchaser do not count towards the higher acquisition value

The taxpayer asks whether paying the homeowners' association debts of previous owners, after acquiring a property at auction, can be added to the acquisition value to reduce capital gains. The DGT responds that it cannot, as such payment creates a right of credit against the former owners.

In 6 key points

How it affects those involved

This ruling clarifies that expenses incurred to settle third-party debts (even if necessary to clear the property's title) do not constitute part of the acquisition cost for tax purposes, as they represent a recoverable debt rather than a direct cost of the asset.

Lifecycle

2020-10-30PublishedPublished 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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