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V1766-24 17 July 2024 · SG de Tributos Locales Criterion in force
OTRO · incremento de valor

Acquisition date for calculating value increase is the date the transferring entity acquired ownership

A query was raised regarding which date should be used to calculate the period during which a value increase is generated in the transfer of urban land. The DGT clarifies that the date on which the selling entity acquired ownership must be used, taking into account corporate reorganisations and the transition of public domain assets.

The question raised

1.- In the transfer of land ownership by "the sellers" to "the buyer", what is the initial moment for calculating the period of 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 acquisition date for determining the tax base shall be the date on which the transferring entity acquired ownership of the land. In operations involving mergers, demergers, or asset contributions under the special Corporate Income Tax regime, the date must be backdated to the previous acquisition that was subject to tax. If the asset transitioned from being public domain of the State to being the property of the entity, the date shall be that of said transfer. For other acquisitions, it shall be the date of the respective legal transaction.

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