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V0187-19 29 January 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Taxes paid on property purchases and mortgages increase the property's acquisition value

A taxpayer inquired whether taxes paid during a property purchase and the establishment of a mortgage can be included in the acquisition value for Personal Income Tax (IRPF) purposes. The Directorate General for Tax Affairs (DGT) ruled that both taxes constitute part of the increased acquisition value of the property.

The question raised

Tax treatment in Personal Income Tax of the Transfer Tax and Stamp Duty that taxed both the acquisition of the dwelling and the creation of the mortgage that financed said acquisition.

The DGT's ruling

The Transfer Tax and Stamp Duty paid for the acquisition of real estate and for the creation of the mortgage financing it constitutes an increase in the acquisition value. This criterion applies whether the real estate is leased or at the disposal of its owner, pursuant to Article 35 of the Personal Income Tax Law.

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