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V0227-19 4 February 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · base imponible

The taxable base of a donation includes the real value of both the land and the building

A father inquired whether he could exclude the value of a building from the taxable base when receiving a donation of a plot of land containing a structure he had built himself. The Directorate General for Taxes (DGT) ruled that the property comprises both the land and the construction, and therefore both must be included in the taxable base.

The question raised

Tax base of the Inheritance and Gift Tax.

The DGT's ruling

The tax base for donations is the real value of the assets and rights acquired. Since the real estate to be donated consists of the land and the construction, the tax base for Inheritance and Gift Tax must include the real value of both elements, without the possibility of excluding the value of the construction.

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