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V0349-25 19 March 2025 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
ITPAJD · disolución de comunidad de bienes

Dissolution of community with monetary compensation may be taxable under documented legal acts

Two co-owners of a property wish to dissolve their community, with one receiving the property through monetary compensation. The query asks which taxable base applies under the Tax on Documented Legal Acts and what the transfer value is for income tax purposes.

The question raised

1st. To determine the tax base to which the sibling who is adjudicated the real estate property must attribute for the purposes of the Tax on Documented Legal Acts.

The DGT's ruling

The dissolution of a community of property without business activity, where the asset is adjudicated to a single co-owner by compensating the other, is taxed under the gradual rate for documented legal acts. The tax base shall be the portion acquired ex novo, determined by the cadastral reference value or the market value, whichever is higher. For Personal Income Tax purposes, the transfer of the share generates a capital gain or loss calculated as the difference between the acquisition value and the transfer value.

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