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V1100-22 19 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · división horizontal

Acquisition value of a property following horizontal division is determined by its ownership coefficient

A taxpayer has requested clarification on how to calculate the acquisition value of a property following a horizontal division and subsequent renovation works. The Directorate General for Taxes (DGT) has ruled that the division does not alter the value or the acquisition date of the original property, and that renovation works only count if they constitute improvements or extensions.

The question raised

Acquisition value of said dwelling for the purposes of calculating capital gains or losses in Personal Income Tax.

The DGT's ruling

Horizontal division does not constitute a change in assets, therefore the resulting dwelling maintains the value and acquisition date of the parent property, applying the resulting ownership coefficient. Improvement or expansion works that increase the capacity, habitability, or useful life of the property may be integrated into the acquisition value. Conversely, repair and maintenance expenses intended to maintain normal use do not form part of said value.

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