Taxation of the sale of inherited real estate in Personal Income Tax (IRPF)

The transfer of real estate received through an inheritance entails specific tax obligations under Personal Income Tax (IRPF). The Dirección General de Tributos (DGT) has specified the method for determining whether the operation generates a capital gain or loss that must be included in the savings tax base.

What the DGT has resolved

The ruling establishes that the difference between the transfer value and the acquisition value determines the capital result. To correctly determine these values, the DGT points out the following criteria:

• Acquisition value: In the case of inherited assets, this value is the one resulting from applying the rules of Inheritance and Gift Tax (ISD), without exceeding the market value. To this amount, the tax amount paid and the expenses inherent to the acquisition must be added.
• Transfer value: This corresponds to the actual amount of the disposal, after deducting the expenses and taxes that the transferor had to pay for the sale.

This result, whether positive or negative, is directly integrated into the taxpayer's savings tax base.

What it means for you

If you are an individual who has received real estate through inheritance and decides to sell it, it is not enough to consider the original purchase price of the deceased. The value that will serve as the basis for the tax calculation is the value declared in the Inheritance and Gift Tax (ISD), adjusted according to current regulations and adding the costs associated with receiving the asset. An error in determining these values can lead to an incorrect settlement of IRPF.

What you should do

It is necessary to precisely verify the documents that certify the acquisition value and the expenses derived from the inheritance and the subsequent sale. Since the regulations of Law 35/2006 (LIRPF) and Law 58/2003 (LGT) govern this calculation, it is recommended to assess each particular situation to ensure that the integration into the savings base is correct according to the actual data of the operation.