Doctrine by topic · DGT Observatory

Investments and Improvements: 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 23 rulings · 2014–2025

Current position

The acquisition value includes the actual purchase amount, the cost of investments and improvements, and the expenses and taxes inherent to the acquisition (notary, registry, management fees, taxes, appraisal, and commissions). Interest and repair and maintenance expenses intended to maintain the useful life or capacity of use are excluded. Improvements are those that increase the capacity, habitability, or extend the useful life of the property.

The DGT's position remains constant in the distinction between improvements (which increase value) and repairs (which do not). Throughout the sequence, refinements have been integrated regarding the justification of the works, the exclusion of furnished elements, and the inclusion of demolition expenses as investments that increase the value of the land.

Turning points

  1. V1601-19

    Clarifies that furnished elements are not considered improvements because they do not increase the capacity, habitability, or useful life of the property.

  2. V3105-20

    Establishes that demolition expenses are considered investments and improvements that increase the acquisition value.

Analysis based on 23 of 23 rulings with a stated position. Updated 24 September 2026.

Rulings on this topic

23
V1934-25 15 Oct 2025

Repair and conservation costs do not increase property acquisition value

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialvalor de adquisiciónvalor de transmisióninversiones y mejorasreparación y conservación LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 34
Affects CompanyExpat · Non-residentIndividual
V0341-25 18 Mar 2025

Urbanisation costs can be included in land acquisition value

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialvalor de adquisiciónvalor de transmisióninversiones y mejorasurbanización LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 34
Affects CompanyExpat · Non-residentIndividual
V1611-22 4 Jul 2022

Building demolition costs treated as increased acquisition value of land

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialvalor de adquisicióninversiones y mejorasdemolicióntransmisión de bienes LIRPF — Ley 35/2006 del IRPF art. 33.1LIRPF — Ley 35/2006 del IRPF art. 34
Affects CompanyExpat · Non-residentIndividual
V3705-16 5 Sept 2016

Determining acquisition value and construction date in self-build scenarios

SG de Impuestos sobre la Renta de las Personas Físicas
ganancia patrimonialvalor de adquisiciónvalor de transmisiónautopromocióndeclaración de obra nueva LIRPF — Ley 35/2006 del IRPF art. 33LIRPF — Ley 35/2006 del IRPF art. 35
Affects CompanyExpat · Non-residentIndividual

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