Inherited properties not formally registered will have an acquisition value based on the date of death

Determining the acquisition value of real estate is a decisive factor in calculating capital gains or losses for Personal Income Tax (IRPF). A recent resolution from the Dirección General de Tributos (DGT) addresses the situation of assets received through inheritance that were not formally registered at the time.

What the DGT has ruled

The advisory body has specified that, in the case of gratuitous transfers, the acquisition value shall be that resulting from applying the rules of the Inheritance and Gift Tax (ISD), provided this amount does not exceed the market value.

In cases where the inheritance was not formalized at the time of death, the regulations establish that this value must be determined using the date of the deceased's death as a reference. Likewise, the DGT confirms that the acquisition date is backdated to the moment of death once the inheritance is accepted. The amount of the gain resulting from a subsequent transfer will be included in the taxpayer's savings tax base.

What this means for you

If you are an individual who has received assets through an inheritance that was not properly formalized at the time, the value you use to declare a future sale will not be the price in a subsequent deed, but rather the value that would have corresponded according to the inheritance tax rules at the date the deceased passed away.

This criterion is fundamental to avoid errors in your IRPF declaration, as an incorrect valuation of the acquisition value could lead to a capital gains tax assessment higher than required or to penalties from the Tax Administration.

What you should do

In the presence of inherited assets whose formalization remains pending, it is necessary to verify the exact date of death and correctly apply the rules of the Inheritance and Gift Tax (ISD) to establish the reference value. Since the correct integration of the gain into the savings tax base depends on this calculation, it is recommended to assess each particular situation to ensure that the declared acquisition value is the one that legally corresponds.