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A homeowners' association seeks to formalise the acquisition of a parking space via public deed to convert it into a common element. The DGT rules that the transfer of ownership is subject to ITPAJD (Transfer Tax), while its designation as a common element is subject to the gradual rate of Documented Legal Acts Tax.
Property owners and developers must account for both transfer tax and documented legal acts tax when formalising the change in status of property elements within a community.
The tax team reviews your specific situation.
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