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V1110-23 4 May 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Notary, registry, real estate agency, and municipal capital gains tax expenses are deductible from capital gains

A query was raised regarding whether purchase costs (notary, registry) and sale costs (real estate commission, municipal capital gains tax) can be deducted when calculating capital gains or losses. The DGT ruled that these expenses are inherent to the transaction and may be included in the acquisition and transfer values.

The question raised

Question posed: Whether the expenses originated in the purchase, including notary and registry fees, as well as in the sale, such as agency commission or municipal capital gains tax, are deductible for the purpose of determining capital gains or losses.

The DGT's ruling

The acquisition value includes the actual amount plus the expenses and taxes inherent to the purchase, excluding interest. The transfer value is the actual sale amount, from which the expenses and taxes inherent to the transaction paid by the transferor are deducted. Expenses considered inherent are those directly related to the purchase and sale, such as notary fees, registry fees, administrative management, real estate commissions, and the Tax on the Increase in the Value of Urban Land.

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