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V0705-21 24 March 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Home improvement works may increase the acquisition value to reduce capital gains

A query is made as to whether works to lower the elevator to ground level and replace downpipes qualify as improvements for the acquisition value of a dwelling. The DGT responds that improvements that increase the capacity, habitability, or useful life of the property increase the acquisition value, unlike maintenance repairs.

The question raised

It is requested to know whether said expenses qualify as improvements for the purposes of the acquisition value in the transfer of a dwelling under Personal Income Tax.

The DGT's ruling

Works that result in an increase in capacity, habitability, or an extension of the useful life of the property constitute improvements. Maintenance repairs, intended to maintain normal use, do not form part of the acquisition value. In the case of works carried out by the community, each owner must impute the portion corresponding to their ownership share.

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