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V1202-17 18 May 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Improvement or expansion works may be added to the acquisition value of the transferred property

A query was raised regarding whether renovation expenses for a property can be included in its acquisition value to calculate capital gains. The DGT ruled that only investments and improvements may be accounted for, excluding repair and maintenance costs.

The question raised

Acquisition value.

The DGT's ruling

The acquisition value includes the cost of investments and improvements, but not repair and maintenance expenses intended to maintain useful life or capacity of use. Improvements or expansions are those that increase the capacity, habitability, or extend the useful life of the property. The taxpayer must justify the nature of the works through invoices and means of proof admitted in Law.

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