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V0027-23 ·11 January 2023 ·consulta-vinculante Medium impact
Tax

Dissolution of co-ownership with excess adjudication compensated by debt is subject to AJD tax, not TPO

A taxpayer seeks to extinguish co-ownership of a property by acquiring full ownership and assuming the co-owner's mortgage debt. The DGT ruled that the transaction is subject to Documented Legal Acts (AJD) tax rather than Onerous Property Transfers (TPO) tax, provided the requirements of indivisibility and equivalence are met.

In 6 key points

How it affects those involved

This ruling clarifies the tax treatment for co-ownership dissolutions where one party acquires more than their share in exchange for assuming a debt, potentially offering a more favourable tax rate under AJD instead of TPO.

Lifecycle

2023-01-11PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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