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A query was raised regarding whether the modification of horizontal division following renovation works triggers Stamp Duty (AJD) and on what basis. The DGT ruled that the conversion of private surface area into common elements is taxable, whereas changes to participation coefficients are not.
The ruling clarifies the tax implications of structural changes in community property, distinguishing between the reallocation of physical space and the adjustment of ownership shares.
The tax team reviews your specific situation.
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