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V3159-20 ·22 October 2020 ·consulta-vinculante Medium impact
Tax

Excess allocation in the dissolution of community property is subject to ITP if avoidable through alternative distribution

A taxpayer inquired whether the dissolution of their community property regime and the resulting excess allocation (receiving more assets than their legal share) are subject to ITP and AJD tax. The DGT ruled that while the dissolution itself is exempt, any onerous excess allocation must be taxed if the distribution could have been structured differently to avoid it.

In 6 key points

How it affects those involved

This ruling clarifies that taxpayers cannot avoid transfer tax by simply labeling an unequal distribution as a dissolution of community property if the imbalance could have been prevented through a different allocation method.

Lifecycle

2020-10-22PublishedPublished 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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