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V0034-18 11 January 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · segregación de fincas

Segregation and dissolution of a community of property are taxed separately as documented legal acts

A query was made regarding the taxation of the segregation of an estate and the subsequent allocation of the resulting properties to specific co-owners with financial compensation. The DGT determines that there are two distinct taxable events that must be taxed independently.

The question raised

Taxation of the operation.

The DGT's ruling

The segregation of a property constitutes a taxable event whose tax base is the value of the segregated property. On the other hand, the dissolution of a community of property through the adjudication of properties to co-owners and monetary compensation constitutes another taxable event subject to documented legal acts, with a tax base based on the value of the real estate. Both acts are taxed according to the gradual rate of the notarial deed.

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