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V0079-14 15 January 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · reducción por vivienda habitual

Purchasing a co-heir's share does not invalidate the main residence tax relief in Inheritance Tax

A co-heir wishes to purchase her sister's share of the family home following their father's death. The DGT has ruled that this acquisition does not disqualify the inheritance tax relief, as the property remains in the hands of the heirs.

The question raised

Whether the acquisition affects the maintenance of the right to the reduction applied upon the acquisition of a residence pursuant to the Inheritance and Gift Tax Law. Taxation of the acquisition.

The DGT's ruling

The acquisition of an undivided share from a co-heir through cash compensation does not entail the loss of the right to the primary residence reduction. This is because the requirement of continuous ownership is not affected, as the property remains under the ownership of the group of persons entitled to the inheritance. The transfer of said share is subject to the Transfer Tax and Stamp Duty.

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