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V1281-26 25 May 2026 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Only investments and improvements to property can increase acquisition value to reduce capital gain

A taxpayer asks whether costs of a full home renovation can be added to acquisition value to reduce capital gain. The DGT responds that only qualified improvements or extensions are deductible, excluding repair and maintenance expenses.

The question raised

Question posed: It is raised whether the expenses of said repair and renovation can be computed as an increase in the acquisition value for the purpose of reducing the capital gain in Personal Income Tax.

The DGT's ruling

The acquisition value includes the actual purchase price and the cost of investments and improvements, but excludes repair and maintenance expenses. Improvements or expansions are those that increase the capacity, habitability, or useful life of the property. Repairs are those intended to maintain normal use, such as painting or the fixing of installations. The taxpayer must justify the nature of the works through admitted means of evidence.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

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