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V0891-24 23 April 2024 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · valor de adquisición

Comparison of cadastral value with the sum of the acquisition values of each share of a property

The taxpayer asks how to value a property of which they hold two halves, acquired at different times through inheritance. The DGT rules that the cadastral value must be compared with the sum of the percentages corresponding to the acquisition value of each half.

The question raised

Valuation of real estate for Wealth Tax purposes. Specifically, it is asked whether the result of the sum of the values determined by the Administration in the Inheritance and Gift Tax for the two halves should be taken and compared with the cadastral value, or whether each of the values determined by the Administration in the Inheritance and Gift Tax for each of the two halves should be taken and compared with 50 percent of the cadastral value, and the result of the higher amounts in each case should be summed.

The DGT's ruling

To value real estate for Wealth Tax purposes, the highest of three values is applied: the cadastral value, the value determined by the Administration for other taxes, or the acquisition value. The acquisition value includes the actual amount plus expenses, investments, and taxes inherent to the transfer, such as Inheritance and Gift Tax. In the case of real estate with halves acquired at different times, the cadastral value must be compared with the sum of 50% of the acquisition value of the first half and 50% of the acquisition value of the second half.

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