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V0691-22 30 March 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · actos jurídicos documentados

Deeds for purchasing homes under construction will be subject to Stamp Duty

A taxpayer queried how Stamp Duty (ITPAJD) applies to the purchase of a home under construction via two separate deeds, and whether a resolutory condition regarding construction deadlines is subject to the tax. The Directorate General for Tax (DGT) ruled that both deeds are subject to Stamp Duty, but the resolutory condition based on construction timelines is not.

The question raised

First: How will the taxpayer be taxed in the Transfer Tax and Documented Legal Acts Tax for the two deeds they are going to execute, taking into account that the transfer of the real estate will be subject to, and not exempt from, VAT.

The DGT's ruling

Deeds for the sale of future goods and for the delivery of housing are taxed under the modality of documented legal acts as they are registrable, possess valuable content, and are not subject to other modalities. The tax base shall be determined in accordance with Articles 10 and 30 of the TRLITPAJD. The resolutory condition due to failure to meet the construction deadline is not subject to the tax because it does not guarantee the payment of the deferred price, but rather another obligation.

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