Skip to content
Back to index
V1303-24 4 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancias y pérdidas patrimoniales

Legal defence costs directly related to property purchases may be included in the acquisition value

A taxpayer inquired whether legal fees and loss of rental income could be added to the acquisition value of a property. The Directorate General for Taxes (DGT) ruled that only legal costs arising from judicial proceedings specifically related to the purchase are deductible as costs inherent to the acquisition.

The question raised

Whether legal defense expenses and lost rental income can be considered part of the higher acquisition value.

The DGT's ruling

The acquisition value of an asset includes the actual purchase price, the cost of investments, improvements, and the expenses and taxes inherent to the acquisition. Expenses inherent to the acquisition are considered to be those corresponding to actions directly related to the purchase of the real estate. Therefore, only the legal fees for the judicial proceedings to acquire the property are considered as such.

Book your free first meeting