Doctrine by topic · DGT Observatory

Increase in Value: 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 36 rulings · 2014–2026

Current position

The period in which the increase in value is generated is determined between the date the property was acquired by the transferor and the previous transfer subject to the tax. In cases of acquisition through special merger or contribution regimes, the calculation is not interrupted and the date of the previous transfer subject to the tax must be taken. The non-existence of capital gains is proven through the difference in values in notary documents, without applying IRPF (Personal Income Tax) rules.

The DGT's position remains constant in the application of the valuation rules of the TRLRHL (Revised Text of the Law Regulating Local Real Estate Tax) and the determination of the generation period. Specific scenarios have been clarified, such as the transfer of property through a purchase option in financial leases and the continuity of the calculation in merger or asset contribution operations.

Turning points

  1. V0198-23

    Establishes that in the purchase option of a financial lease, the transfer value is the total amount paid by the lessee and not the residual value.

  2. V1760-24

    Clarifies that in mergers, spin-offs, or asset contributions, the calculation of the generation period is not interrupted, and the date of the previous transfer subject to the tax must be taken.

Analysis based on 34 of 36 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V0814-26 13 Apr 2026

Value appreciation period starts from property acquisition date

SG de Tributos Locales
incremento de valorperiodo de generaciónsujeto pasivodevengono sujeción TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 104.5TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 106.1.b
Affects CompanyExpat · Non-residentIndividual
V1603-21 27 May 2021

IIVTNU cannot be avoided by comparing sale price with cadastral value

SG de Tributos Locales
iivtnuincremento de valorbase imponiblesujeto pasivovalor de adquisición TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 104TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 106.1.a
Affects CompanyExpat · Non-residentIndividual
V0968-21 19 Apr 2021

Donation of company shares is not subject to Urban Land Value Increment Tax

SG de Tributos Locales
hecho imponibletransmisión de participacionesterrenos de naturaleza urbanadonaciónincremento de valor TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 104.1TRLRHL — RDLeg 2/2004 de Haciendas Locales art. 104.2
Affects CompanyExpat · Non-residentIndividual
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