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V0724-19 1 April 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · acta de notoriedad

No double taxation exists when paying tax on a deed of notoriety and a purchase and sale deed

The taxpayer asks whether they must pay the Transfer Tax (ITP) twice: once for the purchase and sale of a property and once for the deed of notoriety required to register it. The DGT responds that these are two distinct transfers and that proof of payment of the first must be provided to avoid taxation on the second.

The question raised

Question posed: Whether it is sufficient to prove to the Land Registry that the Transfer Tax for the purchase and sale has been satisfied, without being required to pay tax again, given that only one transfer has occurred, or whether it is necessary to submit a new tax return, declaring non-liability to said tax with an amount payable of "0", to avoid double payment.

The DGT's ruling

Ownership proceedings or deeds of notoriety are subject to Transfer Tax (ITP) and Stamp Duty (AJD), unless it is proven that the tax or exemption for the transfer being substituted has been satisfied. There is no double taxation because these are two different transfers: that acquired by the previous owner and that acquired by the taxpayer. To avoid payment on the deed of notoriety, it is necessary to prove that the previous transfer has already been taxed.

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