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V0008-15 5 January 2015 · SG de Fiscalidad Internacional Criterion in force
IRNR · retención

Retention of 3% required upon judicial transfer of real estate via public deed

The consultant asks whether executing a judicial agreement (Tomlin Order) transferring property of real estate in Spain entails a 3% retention obligation. The DGT responds that transfer occurs when the public deed is formalised, at which point the buyer must make the retention or advance payment.

The question raised

Whether the execution of the judicial agreement through which the ownership of real estate is transferred entails the obligation to perform a 3% withholding.

The DGT's ruling

The transfer of real estate occurs with any legal transaction that transfers ownership, such as the formalization of a public deed. In the case of a court order compelling the transfer of ownership via deed, the transfer is materialized upon the execution of said document. At that moment, the acquirer is obliged to perform the 3% withholding on the agreed consideration pursuant to the TRLIRNR.

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