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V0546-24 9 April 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Improvements and extensions may be included in the acquisition value of a sold property

A taxpayer has requested clarification on how to calculate capital gains or losses from the sale of a property that was previously rented. The Directorate General for Taxes (DGT) clarifies which construction costs and depreciation amounts should be applied to the acquisition value.

The question raised

Taxation of the sale of the dwelling for Personal Income Tax purposes.

The DGT's ruling

The acquisition value includes the actual purchase price, investments and improvements, and the expenses and taxes inherent to the acquisition. Improvements or extensions that increase the capacity, habitability, or useful life of the property are included, whereas repair and maintenance expenses to maintain normal use are not. Likewise, the acquisition value must be reduced by the tax-deductible depreciation during the lease period, regardless of whether such depreciation has been applied or not. The transfer value is the actual sale amount, deducting the expenses and taxes inherent to the transaction paid by the transferor.

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