Doctrine by topic · DGT Observatory

Compulsory Expropriation: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 49 rulings · 2014–2026

Current position

Expropriation generates a capital gain or loss by altering the composition and value of the assets. The calculation is based on the difference between the fair price (justiprecio) and the acquisition value, which includes cost, investments, and improvements, minus depreciation. The temporal imputation occurs in the period in which the occupation of the asset takes place, except for special rules due to judicial appeals.

The DGT's position remains stable regarding the treatment of capital gains or losses and their calculation. Consistent criteria have been maintained concerning the distinction between the value of the asset and compensation for damages to crops or late payment interest. The evolution focuses on precision regarding the timing of imputation and the integration of expenses into the acquisition value.

Turning points

  1. V3337-16

    Establishes that the increase in the fair price recognized judicially following a death constitutes a taxable event for Inheritance Tax (ISD) for the heirs.

  2. V1684-17

    Specifies that the capital gain resulting from appealing the fair price must be imputed to the period in which the judicial resolution becomes final.

Analysis based on 45 of 49 rulings with a stated position. Updated 20 September 2026.

Rulings on this topic

24
V2286-25 25 Nov 2025

Gain or loss from expropriation is recognised in the year of occupation

SG de Impuestos sobre la Renta de las Personas Físicas
expropiación forzosaganancia patrimonialimputación temporaljustiprecioocupación LIRPF — Ley 35/2006 del IRPF art. 14.1.cLIRPF — Ley 35/2006 del IRPF art. 33
Affects CompanyExpat · Non-residentIndividual
V0758-25 29 Apr 2025

Capital gain from expropriation is recognised in the year of occupation

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialexpropiación forzosaimputación temporaljustiprecioocupación LIRPF — Ley 35/2006 del IRPF art. 14.1.cLIRPF — Ley 35/2006 del IRPF art. 33
Affects CompanyExpat · Non-residentIndividual
V1242-24 30 May 2024

Arbitral award income after expropriation may be deemed income from transfer of shares

SG de Impuestos sobre las Personas Jurídicas
exención de rentastransmisión de participacionesexpropiación forzosalaudo arbitralentidades de tenencia de valores LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. 21.3
Affects CompanyExpat · Non-residentIndividual
V3189-21 23 Dec 2021

Urbanised plots delivered under expropriation subject to 21% VAT

SG de Impuestos sobre el Consumo
justiprecioexpropiación forzosapatrimonio público del sueloactividad empresarialderecho a la deducción LIVA — Ley 37/1992 del IVA art. 4LIVA — Ley 37/1992 del IVA art. 5
Affects CompanyExpat · Non-residentIndividual
V2712-20 4 Sept 2020

Delivery of urbanised or urbanising land is subject to VAT

SG de Impuestos sobre el Consumo
expropiación forzosajustipreciourbanizaciónterrenos rústicosexención LIVA — Ley 37/1992 del IVA art. 4.unoLIVA — Ley 37/1992 del IVA art. 4.dos
Affects CompanyExpat · Non-residentIndividual

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