Payment of IIVTNU after the sale of a property does not generate a capital loss

A recent binding ruling from the Directorate General of Taxes (DGT) has clarified the tax treatment that must be applied to the payment of the Tax on the Increase in Value of Urban Land (IIVTNU) when it is settled in a tax year following the sale of the property.

What the DGT has resolved

The taxpayer inquired whether the amount paid for the settlement of the IIVTNU in the 2024 tax year could be included as a capital loss in their income tax return for that year, after having previously transferred the property. The DGT has ruled that the payment of this settlement in a tax period subsequent to the transfer has no impact on the Personal Income Tax (IRPF) settlement for the year in which the disbursement is made.

According to the Administration's criteria, the impact of this tax must occur through the transfer value. This means that said amount must be used to reduce the expense in determining the capital gain or loss obtained at the time the transfer of the property took place, in accordance with Law 35/2006.

What this means for you

If you have sold a property and subsequently receive an IIVTNU settlement corresponding to that asset, you will not be able to use that payment to generate a capital loss in your current income tax return. The common error lies in attempting to treat the payment as an expense of the current year, when fiscally its impact must be applied retroactively to the moment of the sale.

This criterion directly affects individuals who find themselves in this situation of temporal mismatch between the transfer of the asset and the settlement of the municipal tax.

What you should do

It is necessary to verify how the capital gain or loss was calculated in the income tax return for the year in which the sale occurred. The IIVTNU amount must be integrated into the calculation of the transfer value to ensure that the taxable base of the transaction is correct. It is recommended to assess each particular situation to determine the exact impact on the settlement of the capital gain obtained at that time.