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V0588-16 11 February 2016 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · unidad productiva

Transfer of a productive unit is subject to ITP and AJD and does not allow deduction of mortgage debt

A company has enquired whether the acquisition of a productive unit (property, facilities, furniture, etc.) is subject to ITP or VAT, and whether the mortgage can be deducted from the tax base. The DGT ruled that the transaction is subject to ITP and that the mortgage debt is not deductible.

The question raised

Whether it is correct to consider that the allocation of the productive unit is not subject to VAT or Transfer Tax, but that, nevertheless, the real estate must be taxed under the latter modality at the general rate of 7%, and whether for the calculation of the taxable base of the Transfer Tax and Stamp Duty, the mortgage encumbrance affecting the real estate and the facilities subject to transfer may be deducted.

The DGT's ruling

The transfer of a productive unit is subject to Transfer Tax and Stamp Duty pursuant to the exception set forth in Article 7.5 of the Recast Text of the Tax. The taxable base is constituted by the real value of the transferred assets. It is not possible to deduct debts even if they are secured by pledge or mortgage.

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