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A taxpayer inquired about the taxation resulting from the dissolution of two joint ownerships of indivisible plots of land, where each sibling was allocated one plot and provided a cash compensation. The Directorate General for Taxes (DGT) ruled that, as the assets are indivisible and the compensation is made in cash, this does not constitute a transfer for value but is instead subject to Stamp Duty (Actos Jurídicos Documentados).
This ruling clarifies that when joint ownership is dissolved through the allocation of indivisible assets accompanied by cash payments to balance the shares, the transaction is classified under Stamp Duty rather than being treated as a taxable transfer of assets.
The tax team reviews your specific situation.
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