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V1543-22 27 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

The transfer value of a property cannot be reduced by the outstanding mortgage debt

A query was raised regarding whether the transfer value of a property could be reduced by subtracting the outstanding mortgage debt. The Directorate General for Taxes (DGT) ruled that the transfer value is the actual amount of the disposal and does not include the repayment of the mortgage loan.

The question raised

Whether, for the purposes of calculating the capital gain derived from the transfer of real estate, the transfer value may be reduced by the amount of the outstanding mortgage loan.

The DGT's ruling

The transfer value is the actual amount for which the disposal is carried out, from which only the expenses and taxes inherent to the transaction paid by the transferor are deducted. The amortization of the mortgage loan is not considered an inherent expense of the transfer, as it is not an action directly related to the sale of the real estate.

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