Deduction of mortgage cancellation expenses in the sale of a home

At the time of selling a home, determining the capital gain or loss is a critical step in the Personal Income Tax (IRPF) declaration. The Dirección General de Tributos (DGT) has clarified which concepts can be included in the transfer value to reduce the taxable base of said operation.

What the DGT has ruled

The binding ruling addresses the taxation of the sale of a home and the possibility of including certain costs in the transfer value. According to the DGT's criteria, the capital gain or loss is calculated by the difference between the acquisition and transfer values. In the latter, it is possible to deduct all expenses and taxes inherent to the operation that have been paid by the transferor.

Specifically, the tax authority points out that the following concepts can be included:

• Notary and registry expenses derived from the mortgage cancellation.
• Real estate agency fees.
• Costs for issuing energy efficiency certificates.

What it means for you

For an individual selling their property, this criterion represents an opportunity to reflect the real cost of the sale more accurately. By including these expenses in the transfer value, the amount of the capital gain decreases, which can result in a lower tax burden for IRPF. It is fundamental to understand that only those expenses that are inherent to the operation and have been effectively paid by the seller can be deducted.

What you should do

It is necessary to collect all documentation proving the payments made. For these concepts to be deductible, there must be invoices or receipts that link the expense directly to the transfer of the property. Since the correct application of Law 35/2006 (LIRPF) depends on the nature of each expense, it is recommended to assess each particular case to ensure that the declared amounts comply with the requirements of current regulations.