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V0096-18 18 January 2018 · SG de Tributos Locales Criterion in force
OTRO · iivtnu

Inheritance of an undivided share in urban property following a parent's death is subject to ITP/AJD

A query was raised regarding whether the adjudication of a father's share following his death constitutes a taxable event for ITP/AJD or if it represents the dissolution of a co-ownership. The DGT ruled that the transfer of property through inheritance is a taxable event for this tax.

The question raised

Whether the adjudication of the share of the property corresponding to the father constitutes a taxable event subject to the IIVTNU or, conversely, whether its application is not appropriate, as this partial extinction of co-ownership is not a transfer of ownership that was already held.

The DGT's ruling

The IIVTNU taxes the increase in value of urban land resulting from the transfer of ownership by any title, whether onerous or gratuitous. The acquisition of a share of a property through inheritance is not an extinction of co-ownership, but rather a transfer of ownership by gratuitous title. Therefore, both transfers (that of the mother and that of the father) are subject to the tax.

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