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V2557-25 18 December 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Extensions or improvements can be added to the property acquisition value for tax purposes

A taxpayer asks whether works carried out on a premises to convert it into a café can be considered improvements to increase its acquisition value. The DGT responds that it will depend on whether the works are repairs or extensions/improvements, and must be supported by invoices.

The question raised

It is requested to determine whether said expenses are classified as improvements for the purposes of the acquisition value in the transfer of the premises under Personal Income Tax.

The DGT's ruling

Repair and maintenance works intended to maintain useful life or capacity of use do not form part of the acquisition value. Conversely, extensions or improvements that increase the capacity, habitability, or useful life of the property do constitute part of said value. The classification of the works shall depend on their nature, and the taxpayer must justify them through invoices that comply with legal requirements.

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