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V0329-21 ·24 February 2021 ·consulta-vinculante Medium impact
Tax

Partial extinction of joint ownership through financial compensation is subject to ITP/AJD, IIVTNU and IRPF

An heir wishes to extinguish her share of a property by transferring it to her brother in exchange for money. The DGT rules that, as this does not constitute a total dissolution of the community of property, the transaction is treated as a sale.

In 6 key points

How it affects those involved

This ruling clarifies that partial liquidations of joint ownership involving monetary compensation are taxed as onerous transfers rather than tax-free distributions.

Lifecycle

2021-02-24PublishedPublished 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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