The importance of paying for all building works with an invoice and VAT in order to be able to deduct them from the capital gains tax
We encounter a common problem with our clients, for whom we calculate the capital gains tax after the sale of their property. For this, we ask for all the costs that our clients have invested in their property during the entire time they have been owners, and it often turns out that they do not have the invoices that should have been issued to them by the construction company or the suppliers who intervened in the construction work or major repairs, because these works were paid for in cash and without an invoice, with only a small receipt, which does not serve the tax authorities as proof of payment.
Therefore,itisveryimportanttoconsiderthatifyouown apropertyinSpainandyouneedtocarryout renovation works,youalwayspayagainstlegalinvoices,whichmustincludeanassignednumberandVAT,becausethisistheonlyway thatina future sale,theseinvoicescanbetakenintoaccountasaninvestmentand can be deductedfromthecapitalgains tax.
Itisalsoimportanttobearinmindthattheworks that havebeenpaidwithoutacorrespondinginvoice,cannotbeclaimedincourtintheeventofaproblem,sincetheworkswhosepaymentcannotbeprovenarenotvalidand the Spanishlegislationestablishesthatonlyalegallyissuedinvoiceservesasproofofpayment.
If you have any questions about this topic, contact our office by sending us a private message via Instagram, WhatsApp or email.
