Skip to content
Back to index
V0320-22 18 February 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · segregación de fincas

Segregated plots retain the value and acquisition date of the parent property

A taxpayer inquired about calculating capital gains or losses when selling a property and subsequently selling the plots resulting from a subdivision. The Directorate General for Taxes (DGT) ruled that subdivision does not alter the asset's identity and that the acquisition value of the plots shall be that of the original property.

The question raised

Method for calculating capital gains or losses in Personal Income Tax.

The DGT's ruling

The segregation of estates does not constitute an asset alteration; therefore, the resulting estates maintain the same value and acquisition date as the parent estate. The capital gain or loss shall be calculated based on the difference between the transfer and acquisition values pursuant to Articles 35 and 36 of the Personal Income Tax Law. Mortgage loan interest does not form part of the acquisition value.

Book your free first meeting