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V2605-23 27 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Acquisition value of a property following dissolution of co-ownership includes financial compensation and assumed debt

A taxpayer inquired how to calculate the acquisition value of a property awarded following the dissolution of a co-ownership agreement, and whether the reinvestment exemption applies to a property requiring renovation. The Directorate General for Taxes (DGT) clarified that the acquisition value of the awarded share includes any compensation paid and the mortgage debt assumed, and that property rehabilitation may count as an acquisition subject to certain requirements.

The question raised

Question raised 1. For the purposes of calculating the capital gain, information regarding the acquisition value of the dwelling following the extinction of the co-ownership.

The DGT's ruling

In the dissolution of a co-ownership, if the allocation does not correspond to the ownership share, a capital gain or loss is generated. The acquisition value of the portion received by way of compensation shall be the sum of the cash compensation, the mortgage debt assumed, and the inherent expenses and investments. For the reinvestment exemption, the renovation of the new dwelling is assimilated to an acquisition if it meets the requirements of the RIRPF. The total amount obtained for the exemption is calculated by subtracting the outstanding principal of the loan from the transfer value.

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