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V1337-23 18 May 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · disolución de comunidad de bienes

Dissolution of co-ownership with excess allocation compensated in cash is subject to Stamp Duty

A taxpayer wishes to dissolve a co-ownership of a property by being allocated the asset and compensating their uncles in cash. The Directorate General for Taxes (DGT) rules that, as it involves an indivisible asset with monetary compensation, the transaction is not an onerous transfer but is subject to Stamp Duty (AJD).

The question raised

Taxation of the dissolution of the condominium over the dwelling.

The DGT's ruling

In the dissolution of communities of property over indivisible real estate, if the asset is allocated to a single co-owner by compensating the others in cash, there is no onerous transfer. The transaction shall be taxed under the modality of documented legal acts provided that the legal requirements are met. The tax base shall be the value of the portion of the real estate acquired through the dissolution.

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