Property Renovation - Key Tax Considerations in Spain

🔍 Have you renovated your property in Spain and want to reflect its new value to the Tax Office? Pay close attention to this key ruling!

🧾 You can only justify an increased purchase value of a property after renovation if you provide detailed invoices.

📉 A new construction deed alone or referencing its declared value is not sufficient.

📌 The Spanish Central Economic-Administrative Court (TEAC) has ruled that only verifiable documentation, such as invoices, will be accepted by the Tax Agency as valid proof.

🚫 Without these invoices, you won’t be able to increase the acquisition value of the property for future transactions (such as sales or inheritance), potentially resulting in a higher tax burden under Personal Income Tax or Inheritance Tax.

✅ Legal tips:
(1) Keep all renovation invoices.
(2) Ensure they are detailed and issued by the company that performed the work.
(3) Only formalize the new construction deed after collecting all proper documentation.

👩‍⚖️ CB Legal is here to support you on tax matters.

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