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V1089-19 21 May 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Sale of inherited land generates capital gains based on acquisition value and date of death

A taxpayer sought clarification regarding the taxation, value, and acquisition date of rural land inherited in 1973 and sold following its rezoning. The DGT explains how to calculate the capital gain and the applicable transitional regime.

The question raised

Taxation of the sale. Value and date of acquisition.

The DGT's ruling

If there is no real estate development activity, the transfer generates a capital gain or loss. The acquisition value by inheritance is that resulting from the application of the Inheritance and Gift Tax rules, without exceeding the market value, plus expenses and investments. The acquisition date is the date of the decedent's death. For assets acquired before 1994 and not used for economic activity, a reduction may be applied to the gain generated before 2006 according to the ninth transitional provision of the Personal Income Tax Law.

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