Real estate sales will be taxed on the difference between acquisition and transfer values

Determining the capital result derived from the sale of real estate is a critical aspect of the Personal Income Tax (IRPF) declaration. The Dirección General de Tributos (DGT) has specified the elements that must comprise the acquisition and transfer values to correctly calculate this tax impact.

What the DGT has resolved

In accordance with current regulations, the capital gain or loss is established through the difference between the acquisition and transfer values. The technical criteria are based on the following points:

• Acquisition value: Comprises the actual purchase amount, investments made, improvements carried out, and expenses inherent to the purchase. It is important to note that loan interest is not part of this value.
• Transfer value: Consists of the actual amount of the disposal, from which the inherent expenses and taxes that the transferor had to satisfy must be deducted.
• Tax integration: The net result of this operation must be integrated directly into the taxpayer's savings tax base.

What it means for you

If you are an individual performing the sale of real estate, it is not enough to simply compare the purchase price with the sale price. To avoid errors in your declaration and possible requests from the Tax Administration, you must perform a detailed breakdown of all costs associated with the property. Including improvements and acquisition expenses increases the acquisition value, which reduces the capital gain (or increases the loss), thereby legally optimizing the tax burden. Conversely, omitting transfer expenses could result in a higher tax base than required.

What you should do

It is necessary to collect all documentation proving the expenses incurred during ownership and the costs derived from the sale. This includes invoices for renovations, deeds, and proof of taxes paid. Since the calculation of the savings base depends on the accuracy of these values, it is recommended to assess each operation individually to ensure that the integration into the IRPF is correct according to Law 35/2006.