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V0323-21 23 February 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · extinción de condominio

Dissolution of co-ownership with allocation of assets exceeding the share value results in capital gain or loss

A query was raised regarding whether the dissolution of a co-ownership, where one owner retains the entire property and compensates the other, triggers taxation. The DGT ruled that the allocation of the corresponding share does not result in changes to assets; however, if assets are allocated at a value exceeding the share, a change in assets occurs.

The question raised

Taxation of the operation under Personal Income Tax.

The DGT's ruling

The dissolution of a community of property and the adjudication of the corresponding share do not constitute an alteration in the composition of the assets. However, if assets or rights are adjudicated for a value greater than that of the ownership share, there is an asset alteration that generates a capital gain or loss. This result is determined by the difference between the acquisition and transmission values, regardless of whether there is cash compensation.

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