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V1042-22 9 May 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · expediente de dominio

Ownership proceedings are subject to ITPAJD unless payment of the replacement transfer tax is proven

Siblings who inherited a property without registration sought clarification on whether notary-led ownership proceedings are subject to ITPAJD, having already paid Inheritance Tax. The DGT ruled that ownership proceedings constitute a taxable event in their own right, unless proof is provided of the payment of the transfer tax that the proceedings are intended to substitute.

The question raised

Whether, having satisfied the Inheritance and Gift Tax for the acquisition of the real estate, the deed that concludes the ownership file is classified as a taxable asset transfer, or whether it would be non-taxable or exempt pursuant to article 7.2C) of Royal Legislative Decree 1/1993.

The DGT's ruling

Ownership files are considered onerous asset transfers subject to ITPAJD by the mere granting of the file. They shall not be taxed if it is proven that the tax or the exemption for the transfer whose title is replaced by said file has been satisfied. In this case, the ITPAJD assessment is independent of the Inheritance Tax assessment carried out by the estate, as the lack of title for previous transfers is what generates the need for the ownership file.

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