Skip to content
Back to index
V1009-20 22 April 2020 · SG de Fiscalidad Internacional Criterion in force
IRNR · ganancia patrimonial

Loan interest not part of property acquisition value

A British company asks whether interest paid on a mortgage to buy property in Spain is deductible. The DGT responds that, when calculating capital gain or loss, interest paid by the buyer must be excluded from the acquisition value.

The question raised

Question raised 1. Whether the remunerative interest paid by the company to the partners for the loan obtained for the acquisition of the real estate that is now to be sold is tax deductible.

The DGT's ruling

To calculate the capital gain or loss from the transfer of real estate, the acquisition value is composed of the actual purchase price, the cost of investments, improvements, and expenses or taxes inherent to the acquisition. Notwithstanding, the regulations expressly establish that any interest paid by the acquirer must be excluded.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Email
Contact