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V2603-25 23 December 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · valor de adquisición

Home improvements and extensions can be included in acquisition value for capital gain calculation

The consultant asks whether home renovations can be included in the acquisition value for capital gain or loss calculation upon sale. The DGT responds that only qualified improvements or extensions count, excluding repair and maintenance costs.

The question raised

Whether the works carried out would form part of the acquisition value of the dwelling, for the purposes of calculating the capital gain generated in a potential sale.

The DGT's ruling

The acquisition value includes the cost of investments and improvements made to the acquired assets. Works that increase the capacity, habitability, or useful life of the property are considered improvements or extensions. Conversely, repair and maintenance expenses intended to maintain the useful life or capacity of use do not form part of the acquisition value. The taxpayer must justify the nature of the works through invoices and other means of evidence.

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