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V1392-25 21 July 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Improvements to inherited property increase acquisition value for capital gain calculation

The consultant asks whether rehabilitation costs in an inherited property can be added to the acquisition value for sale. The DGT responds that only investments or improvements enhancing capacity, habitability, or useful life are counted, excluding repair and maintenance expenses.

The question raised

Classification of said expenses to determine the acquisition value of the dwelling for the purposes of Personal Income Tax.

The DGT's ruling

The acquisition value includes the actual amount of the acquisition plus any investments and improvements made. Improvements are considered to be works that increase the capacity, habitability, or useful life of the property. Repair and maintenance expenses intended to maintain the normal use of material assets do not form part of the acquisition value.

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