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V0075-17 18 January 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · cambio de uso

Deed changing use from office to residential is not subject to variable Stamp Duty if cadastral value remains unchanged

A query was raised regarding whether a deed to change a property's use from office to residential in the Land Registry is subject to Transfer Tax (ITP) and Stamp Duty (AJD). The Directorate-General for Tax (DGT) ruled that, as the cadastral value remains unchanged because it was already registered as residential, there is no taxable value to apply the variable rate of Stamp Duty.

The question raised

Whether the aforementioned deed for the change of use of the property would be subject to the Transfer Tax and Stamp Duty.

The DGT's ruling

For a deed to be subject to the variable rate of Stamp Duty (AJD), it must have as its object a valuable amount or thing. A change of use has valuable content when it influences the cadastral value of the property. If the property was already listed as a dwelling in the Cadastre, the deed for the change of use does not imply a modification of the cadastral value and does not have valuable content for the variable rate.

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