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V0710-14 14 March 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · disolución de comunidad de bienes

Dissolution of a community of property is taxed via documented legal acts and, as applicable, via ITP or ISD

A taxpayer has enquired about the taxation applicable when dissolving a community of property and allocating estates encumbered with charges to each sibling. The DGT indicates that the dissolution is taxed through documented legal acts, and that any excess in allocation may be subject to ITP or ISD, depending on whether financial compensation is involved.

The question raised

Taxation of the operation.

The DGT's ruling

The dissolution of a community of property without business activity is taxed as documented legal acts. If there is an imbalance in the allocation, the onerous excess allocation (with compensation) is taxed under the modality of onerous transfers of property within the Transfer Tax, unless it is due to the impossibility of forming equivalent lots due to indivisible assets compensated with money. If the excess is lucrative (without consideration), it shall be taxed under the Inheritance and Gift Tax.

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