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V1326-24 7 June 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
ITPAJD · comunidad de bienes

Separation of a joint owner through segregation and adjudication is subject to tax on documented legal acts

A joint owner wishes to exit a community of property by segregating a portion of the estate and being granted exclusive ownership of it. The DGT has ruled that the operation constitutes a separation of a joint owner rather than a total dissolution, which determines its tax treatment under ITPAJD and IRPF.

The question raised

Taxation of the operation in the Transfer Tax and Documented Legal Acts Tax and in the Personal Income Tax.

The DGT's ruling

The separation of a co-owner is not a transfer, but a transformation of the right which is taxed via the variable quota of documented legal acts if the requirements of art. 31.2 of the TRLITPAJD are met. If there is an excess of adjudication compensated in money or common assets, it is not taxed under transfer tax on onerous transfers. In the Personal Income Tax (IRPF), the separation does not generate a capital gain, unless assets are adjudicated at a value higher than the ownership quota, in which case a change in assets would occur.

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