Real estate fees may reduce the transfer value of a property

At the time of selling a property, calculating the capital gain or loss for Personal Income Tax (IRPF) is a critical step in determining the tax burden. A recurring question among taxpayers is whether the costs derived from managing the sale can be used to reduce the taxable base of said operation.

What the DGT has ruled

The Dirección General de Tributos (DGT) has clarified that the transfer value of a property is determined by the actual amount of the disposal, from which the inherent expenses and taxes paid by the transferor must be subtracted. In this sense, the body establishes that real estate agency fees for managing the sale are considered expenses inherent to the transfer.

This implies that these costs should not be treated as an independent expense, but should directly reduce the transfer value of the property in the calculation of the capital gain or loss.

What this means for you

For individuals selling their homes, this ruling allows for an optimization of the tax calculation. By including real estate agency fees as a transfer expense, the sale value is reduced accounting-wise, which leads to a decrease in the resulting capital gain.

This reduction has a direct impact in two scenarios:

• Reduction of the taxable base: By decreasing the capital gain, the amount upon which the IRPF tax rate is applied is lower.
• Age-based exemption: If the transferor is over 65 years old and the property constitutes their habitual residence, the resulting capital gain will be exempt according to the provisions of article 33.4.b) of the Law 35/2006 (LIRPF).

What you should do

It is necessary to keep all documentation proving the payment of real estate fees, such as duly issued invoices, to justify the reduction of the transfer value before the Tax Administration. Since each disposal operation presents particularities regarding expenses and taxes, it is necessary to assess each case individually to ensure that the application of the regulations is correct.