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V2357-24 14 November 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Levies for improvement works increase the acquisition value of a property for Income Tax purposes

A taxpayer asks whether levies paid for works in their building can be added to the acquisition value of the property when selling it. The DGT responds that if the works constitute improvements or extensions, they can indeed increase said value.

The question raised

It is requested to determine whether expenses from the special assessment constitute a higher acquisition value when determining the potential capital gain or loss for Personal Income Tax purposes.

The DGT's ruling

Works that involve an improvement or expansion, increasing the capacity, habitability, or useful life of the property, constitute a higher acquisition value. Repair and maintenance expenses intended solely to maintain normal use are not included. In the event of works carried out by the community, each owner must impute the corresponding part according to their participation quota in the special assessment.

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