Capital gains calculation for properties with mixed origins: purchase and inheritance

Determining capital gains or losses in the transfer of real estate is a critical aspect of the Personal Income Tax (IRPF) declaration. Recently, the Dirección General de Tributos (DGT) has clarified the technical procedure for when the ownership of a property has a mixed origin—that is, when one part has been acquired through a sale and purchase and the other through succession.

What the DGT has resolved

The ruling addresses the correct way to calculate capital gains derived from the sale of a property whose ownership comes from two different channels. The DGT's criteria establish that a single acquisition value cannot be applied to the entire asset; instead, a segmented calculation must be performed:

• For the purchased portion: The acquisition value will be the actual amount of the sale and purchase, increased by expenses and investments made, using the date of the sale and purchase as the acquisition date.
• For the inherited portion: The acquisition value will be the one resulting from applying the rules of Inheritance and Gift Tax, using the date of the deceased's death as the acquisition date.

In both cases, the transfer value will be the actual sale amount, provided it is not lower than the market value, deducting the expenses and taxes inherent to the transfer. All of this is in accordance with the provisions of Law 35/2006 on IRPF.

What this means for you

If you are the owner of a property that you have received partially through inheritance and partially through a previous sale and purchase, you cannot treat the asset as an indivisible unit for tax purposes. The administration requires that the acquisition value be decomposed to reflect the legal reality of how each percentage of ownership was obtained. An error in this segmentation could lead to an incorrect settlement of capital gains before the Tax Agency.

What you should do

It is necessary to perform a detailed analysis of the purchase deeds and the inheritance tax return to precisely identify the values and dates for each percentage of ownership. Every expense and investment that may increase the acquisition value of the purchased portion must be correctly documented. Given the technical complexity of this calculation, it is recommended to assess each particular situation to ensure that the tax base faithfully reflects current regulations.