Skip to content
Back to index
V0317-22 18 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Improvement or extension works are included in the acquisition value, but repairs are not

A taxpayer inquired whether rehabilitation works carried out in 2005 can be added to the acquisition value of a property to calculate capital gains in a donation. The DGT ruled that they are only included if they constitute improvements or extensions, and not if they are merely repairs or maintenance.

The question raised

Acquisition value of the real estate for the purpose of calculating the capital gain or loss in Personal Income Tax, taking into account that in 2005 rehabilitation works were carried out on the same.

The DGT's ruling

The acquisition value includes the cost of investments and improvements, but not repair and maintenance expenses intended to maintain the normal use of the asset. Improvements or extensions are those that increase the capacity, habitability, or useful life of the property. The classification of works as an improvement or a repair is a matter of fact that must be proven to the Administration.

Book your free first meeting