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V1025-23 26 April 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Sale of a plot of land constitutes a capital gain or loss subject to Personal Income Tax (IRPF)

A query was made regarding the taxation of the sale of a plot of land. The Directorate General for Taxes (DGT) responds that the transaction generates a capital gain or loss to be included in the savings tax base.

The question raised

Taxation of the aforementioned transaction.

The DGT's ruling

The transfer of the plot, as it is not carried out within an economic activity, is an alteration in the composition of the assets that results in a capital gain or loss. The acquisition value shall be the actual purchase amount plus investments, improvements, and inherent expenses, reduced by depreciation. The transfer value shall be the actual sale amount, provided it is not lower than the normal market value, deducting the expenses inherent to the sale.

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