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V1623-24 3 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Tax debt and interest cannot be deducted from the property transfer value

A taxpayer inquired whether they could reduce the sale value of their home by subtracting tax debt secured by a mortgage, its interest, and cancellation costs. The Directorate General for Taxes (DGT) ruled that these items are not expenses inherent to the transfer.

The question raised

Whether, for the purposes of calculating the capital gain obtained from the sale of real estate, the transfer value may be reduced by the amount of the aforementioned tax debt, the late payment interest of the debt and that of the suspension, and the mortgage cancellation expenses.

The DGT's ruling

The transfer value is the actual amount of the disposal minus the expenses and taxes inherent to the transaction paid by the transferor. Inherent expenses are those directly related to the purchase and sale of the real estate. The payment of a debt, including its late payment interest, does not constitute an inherent expense of the transfer as it is not directly related to the sale.

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