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V1890-14 15 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Selling an inherited property generates a capital gain or loss subject to Personal Income Tax

A taxpayer has enquired about the taxation of the sale of a property acquired through inheritance. The Directorate General for Taxes (DGT) explains that the difference between the transfer value and the acquisition value must be calculated, applying the valuation rules for assets acquired by way of gratuity.

The question raised

Taxation of the transfer of said property for Personal Income Tax purposes.

The DGT's ruling

The transfer generates a capital gain or loss due to the variation in the value of the assets. As it is an acquisition by inheritance, the acquisition value shall be that resulting from the application of the Inheritance and Gift Tax rules, without exceeding the market value. The date of acquisition is backdated to the moment of the decedent's death. The gain shall be included in the savings tax base if the property was held for more than one year, or in the general tax base if held for less.

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