Treasury has given joy to home sellers. In resolution V1601-22, of July 1, the General Directorate of Taxes established that the sale or transfer price of a home will be the value that must be used to calculate the capital gain in personal income tax. In this way, it rejects that the reference value of the Cadastre, which is the taxable base of the ITP (tax paid by the buyer of a used house), is used to calculate the gain in personal income tax.

Thus, the General Directorate of Taxes does not see a problem in the fact that the buyer and seller of a house pay taxes for different values. That is, the buyer of a used home pays the Property Transfer Tax (ITP) whose tax base is the famous reference value of the Cadastre, while this value is not applied in the IRPF and the seller must calculate the capital gain obtained in based on the sale price of the house. Unless this price is lower than the market value. If so, it will be taxed based on the reference value of the Cadastre and not based on the actual sale price.

This issue has been the subject of various court decisions. An example of this is the judgment of 5-25-2017 (appeal 341/2015) of the National High Court, which declared that “it is an axiom that if the fiscal technical concept of the value is the same or very close and the admissible valuation method is the same, such as, for example, the expert opinion applied for the purposes of a tax, it makes no sense to maintain a different value in the other tax.”