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V1760-24 17 July 2024 · SG de Tributos Locales Criterion in force
OTRO · incremento de valor

Acquisition date for calculating value increase shall be the date of effective ownership of the land

A query was raised regarding which date should be used to calculate the period during which the increase in value is generated for urban land: the date of acquisition or the date of the land's removal from public domain. The DGT ruled that the date on which the transferring entity acquired ownership must be used, stating that the dates of the land's designation as public domain or its subsequent removal are irrelevant.

The question raised

1.- In the transfer of ownership of the land by "the sellers" to "the buyer", what is the initial moment for the calculation of the period for the generation of the increase in value: the date of acquisition of the land or the date on which the land was declassified from the public domain? In the event that the declassification is not taken into account, what date must be taken as the acquisition date?

The DGT's ruling

The commencement date for the calculation of the period for the generation of the increase in value shall be the date of acquisition of the ownership of the land by the transferring entity. If the acquisition was carried out through the special regime for mergers, demergers, or asset contributions, the calculation is not interrupted, and the previous acquisition date that was subject to tax must be used. In the case of assets that transitioned from being public domain of the State to being the property of the entity, the acquisition date is when the asset became its property. For other acquisitions through legal transactions, the date of the respective transaction shall be taken, also applying the rule of non-interruption for special regimes.

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