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V0277-22 15 February 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · condición resolutoria

Creation and cancellation of a resolutory condition to secure deferred payment are subject to ITPAJD under certain conditions

A property developer has enquired whether a sale and purchase deed for a future property, containing a resolutory condition to secure deferred payment, is subject to ITPAJD. The DGT has ruled that such a condition is subject to Stamp Duty (ITPAJD) if formalised in a notarial deed.

The question raised

First: At the time of the execution of the public deed for the future transfer of the property that will be subject to VAT, would the ITPAJD be accrued under the modality of documented legal acts?

The DGT's ruling

The establishment of an explicit resolutory condition as a guarantee for deferred payment is subject to ITPAJD under the modality of documented legal acts, with the favored entity being the taxable person. The tax base shall be the total amount covered by the condition. The cancellation of said condition shall also be taxed under the variable rate for documented legal acts if carried out by means of a notarial document, but shall not be taxed if carried out by private document.

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