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V0403-22 2 March 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · disolución de comunidad de bienes

Dissolution of joint property ownership with excess allocations may trigger Stamp Duty if compensation involves common assets

A taxpayer queried the tax implications of dissolving several joint property ownerships where siblings compensate for excess allocations using real estate and cash. The DGT clarifies that the dissolution of non-business joint ownerships is subject to Stamp Duty (AJD) provided quotas are respected; however, if excess allocations occur, the nature of the compensation determines the tax liability.

The question raised

Taxation of the operation.

The DGT's ruling

The dissolution of communities of property without business activity that does not generate excess allocations is taxed under the modality of documented legal acts (AJD). If excess allocations exist, these are taxed under onerous transfers of assets (TPO) if they are compensated in cash. However, following the doctrine of the Supreme Court, if the compensation is made with other assets that were already part of a common community of property, the operation shall not be taxed under TPO, but under AJD, provided that the requirements of indivisibility, equivalence, and proportionality are met.

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