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V3380-20 ·19 November 2020 ·consulta-vinculante Medium impact
Tax

Acquisition value of a self-built property includes land and construction costs

A taxpayer has requested clarification on how to calculate capital gains when selling a property they built on their own land. The Directorate General of Taxes (DGT) clarifies that the acquisition value is the sum of the land cost and the construction cost, and that improvements may be added to the value if they increase the property's capacity or useful life.

In 6 key points

How it affects those involved

This clarification provides certainty for taxpayers regarding the correct calculation of capital gains tax on self-built properties, ensuring that both land and construction costs are properly accounted for.

Lifecycle

2020-11-19PublishedPublished 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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