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V1537-17 15 June 2017 · SG de Tributos Locales Criterion in force
OTRO · iivtnu

Tax on the increase in value of urban land is incurred upon acquisition of property through inheritance

A taxpayer has enquired whether they must pay the tax on the increase in value of urban land for a property with uncertain ownership. The DGT states that determining ownership is a civil matter and that, if the property were owned by the taxpayer through inheritance, they would be the taxable person for this tax.

The question raised

Whether the assessment of the Tax on the Increase in Value of Urban Land is applicable to this dwelling, regarding which ownership is uncertain.

The DGT's ruling

The taxable event for the IIVTNU requires an increase in value derived from a transfer of land or real rights. In transfers for consideration, the taxpayer is the party acquiring the land. If the property is acquired through inheritance (mortis causa), the taxable event occurs and the acquirer is the taxpayer.

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