Back to index
V0248-21 12 February 2021 · SG de Tributos Locales Criterion in force
OTRO · iivtnu

Unilaterally determined value in inheritance acceptance is insufficient to prove absence of capital gains

A taxpayer inquired whether they could avoid the IIVTNU (Tax on Increased Value of Urban Land) by claiming that the acquisition value through inheritance and the transfer value were identical. The DGT ruled that the tax accrual occurs on the date of death and that the value assigned unilaterally in the inheritance deed does not constitute valid evidence of the absence of an increase in value.

The question raised

Effects on the taxation of the Tax on the Increase in Value of Urban Land in the event that no increase in value has occurred due to the coincidence between the transfer and acquisition values of the real estate property. Application of Constitutional Court Rulings 59/2017 and 126/2019.

The DGT's ruling

The accrual of the IIVTNU in transfers due to death occurs on the date of the decedent's death. To prove the non-existence of capital gains, the taxpayer must provide evidence that the market value at the date of acquisition and the date of transfer is the same. The value unilaterally attributed in the deed of inheritance acceptance does not constitute a solid principle of evidence regarding the non-existence of an increase in value, as it does not reflect the market value on the date of death.

Book your free first meeting