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V1513-22 24 June 2022 · SG de Tributos Locales Criterion in force
OTRO · incremento de valor

For gratuitous transfers, the transfer value is the higher of the amount declared for ISD and the amount verified by the Administration

The applicant asks how to determine the acquisition and transfer values in a property donation to calculate the increase in land value. The DGT clarifies that, as it is a gratuitous transfer, the transfer value is the higher of the amount declared for Inheritance and Gift Tax and the amount verified by the Administration.

The question raised

Question as to what the acquisition value and the transfer value are in a gratuitous operation in order to verify the existence of an increase in value in the land, and where applicable, to determine the tax base of the tax.

The DGT's ruling

In transfers for consideration, to verify the absence of an increase in value or to determine the tax base, the transfer value shall be the higher of the value declared in the Inheritance and Gift Tax and the value verified by the Administration. The acquisition value shall be the one resulting from applying the same rules depending on whether the original acquisition was for consideration or for gratuitous purposes.

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