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V0361-19 20 February 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · transmisiones patrimoniales

The date of a private document for Transfer Tax is the date of its delivery to an official, and the accrual for new construction is the date of the deed

The taxpayer asks when the acquisition of a plot of land via a private document expires and how the tax is settled for an old new construction. The DGT responds that for the plot, the date is that of delivery to the official, and for the construction, the accrual occurs upon the execution of the public deed.

The question raised

Question posed: Whether Article 1,227 of the Civil Code is applicable to determine the date of the private document and whether, therefore, the statute of limitations would have occurred regarding the Tax Administration's right to perform a settlement in relation to the acquisition of the plot and the declaration of new construction, or only regarding the first of the aforementioned events and, in this second case, whether, given that 29 years have elapsed since its completion, the tax base to be declared for the new construction would be the construction value stated in the corresponding Property Tax (IBI) receipt.

The DGT's ruling

For the acquisition of a plot of land via a private document, the taxable event is understood to have occurred on the date the document is delivered to the corresponding official, and said date must be proven for the calculation of the statute of limitations. In the case of the declaration of new construction, the tax accrues on the day the public deed is formalized. The tax base for the new construction shall be its actual cost value at the time it was carried out.

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