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V0073-18 17 January 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias y pérdidas patrimoniales

Legal and solicitor fees may be deducted from the transfer value in property sales

A taxpayer inquired whether legal and solicitor fees arising from judicial proceedings to sell a property held in co-ownership are deductible. The Directorate General for Taxes (DGT) ruled that these expenses can be deducted from the transfer value.

The question raised

Deductibility of lawyer and solicitor fees in the determination of the change in net worth

The DGT's ruling

In onerous transfers, the transfer value is the actual amount of the disposal, from which the expenses and taxes paid by the transferor are deducted. Therefore, the lawyer and solicitor fees incurred in the judicial proceedings that led to the sale of the real estate may be deducted from the transfer value to determine the capital gain or loss.

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