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V1031-22 6 May 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · extinción de condominio

Capital gains or losses arise if asset allocation in the termination of co-ownership exceeds ownership shares

A married couple co-owning a property decides to terminate their co-ownership by allocating the entire asset to the husband through financial compensation to the wife. The DGT rules that, as the ownership share of each party is not respected, a change in assets occurs.

The question raised

Question posed: Taxation of the operation under Personal Income Tax.

The DGT's ruling

The division of common property does not constitute a capital gain or loss if the allocation corresponds to the ownership share of each co-owner. If assets are allocated at a value exceeding the ownership share, a capital gain or loss is generated for the other co-owner. This amount is determined by the difference between the acquisition and transfer values, regardless of whether cash compensation is provided.

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