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V0824-23 10 April 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Inheritance taxes and expenses cannot be deducted from Income Tax, but acquisition value may be increased

The taxpayer asks whether they can deduct inheritance taxes, notary fees, and funeral expenses from their personal income tax return. The Directorate General of Taxes (DGT) responds that there is no regulation allowing such deductions, although it is possible to add certain expenses to the acquisition value of the assets.

The question raised

Question posed - Possibility of deducting the amount of taxes paid, as well as notary and funeral expenses, in the 2022 income tax return.

The DGT's ruling

It is not possible to deduct taxes paid or notary or funeral expenses from Personal Income Tax (IRPF). However, for a future transfer, the acquisition value shall include the value of the assets on the date of death, plus investments, improvements, expenses, and taxes inherent to the acquisition. Expenses for legal, expert, and partition accountant services may also be added if they are directly related to the acquisition.

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