Doctrine by topic · DGT Observatory

Real Cost 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 8 rulings · 2014–2024

Current position

The tax base for the declaration of new construction is the real cost value of the work performed, understood as the original material execution value without applying update coefficients or deflators. In the establishment of a horizontal property regime, the tax base integrates the real cost value of the new construction and the real value of the land as of the date of the deed. In modifications of the horizontal division, the base is limited to the value of the part of the building that is modified.

The DGT's position remains constant in defining the real cost value as the original material execution value without updating. Throughout the rulings, the composition of the tax base in cases of horizontal division has been specified, integrating the value of the land. The doctrine confirms that the tax base in partial modifications must be limited solely to the elements undergoing the alteration.

Analysis based on 8 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8

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