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V1040-22 9 May 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · expediente de dominio

Ownership proceedings subject to ITPAJD if previous transfer tax is not proven

Consultants who purchased an unregistered property wish to initiate a notarial ownership proceeding. They are inquiring whether this process is subject to ITPAJD, given that they have already paid the transfer tax for the original purchase.

The question raised

Whether, having satisfied the Transfer Tax and Documented Legal Acts Tax for the acquisition of the real estate, the act that concludes the ownership file is classified as a transfer subject to tax purposes, or whether it would be non-subject or exempt by virtue of article 7.2.C) of Royal Legislative Decree 1/1993 approving the consolidated text of the Law on Transfer Tax and Documented Legal Acts Tax.

The DGT's ruling

The ownership file constitutes a taxable event in itself, unless it is proven that the tax or the exemption for the transfer whose title is being substituted has been satisfied. In this case, the sale performed is not the transfer that lacks title, as the deed is a valid title. The ownership file seeks to substitute the lack of title for previous transfers to allow for registration, therefore the settlement of the previous transfer is independent of that paid for the current sale.

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