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V0748-16 25 February 2016 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · segregación de fincas

Taxable base in property subdivision includes both land and buildings

A query was raised regarding whether, in the subdivision of an urban property, tax should be paid only on the value of the land or also on the buildings. The DGT ruled that the taxable base must include both the land and the buildings based on the principle of accession.

The question raised

Whether, at the time the segregation is carried out, the value for tax purposes will be taken exclusively as the value of the plot (land) or whether the value of the plot and the structures built upon it (land and airspace) would be taken into account, given that by then the building would already be constructed.

The DGT's ruling

The deed of segregation of an estate constitutes a taxable event for Documented Legal Acts. The tax base is determined by the value of the estate being segregated on the date the act is formalized. According to the principle of accession, the value of a plot of land or urban plot must include both the land and the airspace.

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