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V0966-20 21 April 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · transmisión patrimonial onerosa

Purchase of a co-owner's share by another co-owner is subject to Property Transfer Tax

A taxpayer inquired whether purchasing a sibling's share in an inherited property is subject to tax. The DGT ruled that, as the community of property is not extinguished, the transaction constitutes an onerous transfer subject to Property Transfer Tax (ITP).

The question raised

Taxation of the operation of purchase by one co-owner from another of their participation.

The DGT's ruling

The acquisition of a co-owner's share by another in exchange for consideration constitutes an onerous transfer of assets. As the extinction of the community of property does not occur, it represents a subjective modification of the co-ownership. The taxable event is subject to the modality of Onerous Transfers of Assets.

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