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V2651-18 2 October 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Outstanding mortgage debt cannot be used to reduce the property transfer value

A taxpayer inquired whether the sale price of their property could be reduced by accounting for outstanding mortgage credits and other debts secured against the property. The Directorate-General for Tax (DGT) ruled that the transfer value is the actual disposal amount minus expenses and taxes, with no provision to deduct outstanding debt.

The question raised

Whether, for the purposes of calculating the capital gain obtained, the amount of the aforementioned credits may be deducted from the transfer value of the dwelling.

The DGT's ruling

The transfer value is the actual amount of the disposal, from which the expenses and taxes inherent to the transfer paid by the transferor are deducted. Therefore, it is not possible to reduce said value by the outstanding amount of the credits encumbering the transferred property. The resulting capital gain or loss is included in the savings tax base.

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