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V0029-14 13 January 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · transmisiones patrimoniales

Religious entities under Law 49/2002 may be exempt from tax on property purchases

A brotherhood has enquired whether acquiring property from a private individual is exempt from Transfer Tax and Stamp Duty. The DGT has ruled that the transaction is subject to tax; however, the entity may apply for an exemption if it adheres to the special tax regime established by Law 49/2002.

The question raised

Whether the acquisition of the real estate is exempt from the Transfer Tax and Documented Legal Acts Tax.

The DGT's ruling

The acquisition of real estate from a private individual constitutes an onerous transfer of assets subject to the tax. However, non-profit entities under Law 49/2002 and religious entities with cooperation agreements with the State are exempt. To apply for the exemption, the entity must submit the supporting documentation along with the self-assessment.

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