Skip to content
Back to index
V0731-18 19 March 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · transmisiones patrimoniales onerosas

Declaration of new construction and horizontal division taxed via variable Stamp Duty rate on construction costs

A taxpayer queried the tax treatment regarding modifications to a building floor (new construction and horizontal division). The DGT ruled that Transfer Tax (ITP) does not apply as there is no transfer of property, but Stamp Duty (AJD) is due based on the value of the new construction carried out.

The question raised

Tax treatment of modifications to the first floor of the property.

The DGT's ruling

Modifications regarding new construction and horizontal division do not constitute onerous transfers (ITP) as there is no change in ownership. However, they are subject to the variable rate of Stamp Duty (AJD) as they are registrable documents with valuable subject matter. The tax base shall be the actual cost value of the new construction, excluding the remainder of the non-affected building. The taxable person is the party requesting the document, generally the owner.

Book your free first meeting