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V0881-22 26 April 2022 · SG de Tributos Locales Criterion in force
OTRO · iivtnu

Acquisition value cannot be updated for inflation nor transmission value deflated in the IIVTNU

A taxpayer inquired whether accumulated inflation could be applied to update the acquisition value or if the sale value could be deflated when calculating the IIVTNU. The DGT ruled that the regulations do not permit either option.

The question raised

To perform the calculation by "real" estimation of the IIVTNU, can the increase produced by the accumulated inflation during the period of ownership of the property be applied to the initial acquisition value, or, alternatively, can the sale price be deflated by applying said inflation?

The DGT's ruling

To establish the non-existence of an increase in value, the acquisition value stated in the title or deed must be taken, without the possibility of updating it with the CPI or any other index. The IIVTNU law does not permit the updating of the acquisition value nor the deflation of the transfer value. The acquisition value may not be increased by expenses or taxes levied on the transaction.

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