Taxpayers may not reduce the acquisition and transfer values of a property

The calculation of capital gains or losses derived from the transfer of a property is a critical aspect of the Personal Income Tax (IRPF) declaration. Recently, the Dirección General de Tributos (DGT) has specified the treatment that acquisition and transfer values must receive to avoid errors in determining the taxable base.

What the DGT has resolved

The query concerned the possibility of applying a prior reduction to the acquisition and transfer amounts of a real estate asset before determining the result of the transaction. The Administration's criterion is categorical: no prior reduction may be applied to said values.

Instead, the regulations establish a specific treatment for the expenses associated with the transaction:

• Acquisition value: The expenses inherent to the purchase, paid by the acquirer, must be added to the purchase price.
• Transfer value: The expenses inherent to the sale, paid by the transferor, must be deducted from the sale price.

The resolution emphasizes that these expenses must strictly correspond to each owner's ownership share and must be duly justified through supporting documentation.

What this means for you

If you are a property owner and proceed with its sale, you cannot attempt to artificially decrease the entry or exit values through generic reductions. The calculation of the capital gain must be carried out following the legal formula, integrating acquisition costs and subtracting transfer costs.

For residents in Spain and those with real estate assets in national territory, this implies that the documentary management of expenses is fundamental. Any expense you intend to include to increase the acquisition value or decrease the transfer value must meet two requirements: being directly linked to the transaction and being supported by invoices or legal vouchers demonstrating that the expense was assumed by the owner according to their percentage of ownership.

What is advisable to do

In the event of a real estate transfer transaction, it is necessary to perform a detailed analysis of all associated costs. It must be verified that each purchase expense (such as taxes or notary fees) and each sale expense (such as brokerage commissions) is correctly documented and assigned to the corresponding ownership share. Given the complexity of these calculations and their direct impact on the tax burden, it is recommended to assess each case individually to ensure compliance with the IRPF Law and the General Tax Law.