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V0230-19 5 February 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · adjudicación de vivienda

Housing allocation by a cooperative may be subject to ITP or AJD depending on its VAT treatment

A query was raised regarding whether the allocation of a property by a cooperative to a member who inherited rights from another member results in double taxation with Inheritance Tax. The DGT ruled that these are independent acts and that taxation under ITP or AJD will depend on whether the transaction is exempt from VAT.

The question raised

Taxation under the Transfer Tax and Documented Legal Acts Tax regarding the allocation by the cooperative to the cooperative member, considering that the market value in the allocation is the same as that declared in the inheritance, which would result in double taxation under the aforementioned tax.

The DGT's ruling

If the allocation of the dwelling is subject to and exempt from VAT, it shall be taxed under the modality of onerous transfers of property within the ITP and AJD. If the allocation is not exempt from VAT, it shall not be taxed under property transfers, but rather under the variable rate of Documented Legal Acts. In both cases, there is no double taxation with Inheritance Tax, as the inheritance of rights and the allocation of the dwelling are independent legal acts.

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