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V1582-17 19 June 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · obra nueva

The tax base for new construction declarations is the original actual cost value without indexation

An association has requested clarification on how to determine the tax base for declarations of new construction and new horizontal division of a building. The Directorate General for Taxes (DGT) clarifies that the construction cost must be the original actual value without updates, whereas the land value must be the current value at the time of accrual.

The question raised

First question raised: Whether, for the purposes of taxation of the declaration of new construction in the ITPAJD, AJD modality, the tax base would be the actual cost value of the modified new construction on property 127, as determined on the date it was carried out.

The DGT's ruling

For the declaration of new construction, the tax base is the actual cost value of the declared work, which must be the original cost without indexation. In the establishment of buildings under a horizontal property regime, the tax base includes the actual cost value of the new construction (original and without indexation) and the actual value of the land at the time of accrual. In the latter case, the value of the land must be the current value on the date the deed is formalized.

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