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V1920-17 19 July 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Mortgage cancellation costs and capital gains tax on land value can be deducted from the transfer value

A taxpayer inquired whether mortgage cancellation expenses and the tax on the increase in value of urban land can be included when calculating capital gains. The Directorate General for Taxes (DGT) ruled that both costs reduce the transfer value.

The question raised

Determination of capital gains. Expenses and taxes to be considered, in particular those generated in the cancellation of the mortgage loan and the Tax on the increase in the value of urban land.

The DGT's ruling

The transfer value is determined by the actual amount of the disposal, from which the expenses and taxes inherent to the transfer paid by the transferor are deducted. In this sense, both the tax on the increase in the value of urban land and the mortgage loan cancellation expenses linked to the property reduce the transfer value.

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