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V1451-22 20 June 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · consolidación del dominio

Consolidation of full ownership upon death of the usufructuary is not subject to the IVTNU

A query was raised regarding whether the extinction of a usufruct due to the death of the holder triggers the tax on the increase in value of urban land. The DGT ruled that there is no taxable event under the IVTNU because no transfer occurs; rather, it is a recovery of rights by the bare owner.

The question raised

First question raised: Whether the consolidation of ownership is subject to the prior payment of the Tax on the Increase in Value of Urban Land.

The DGT's ruling

The consolidation of ownership does not constitute a transfer of property or real rights, but rather a recovery of the rights of enjoyment by the owner. Therefore, the taxable event for the IVTNU does not occur. For future transfers, the period for calculating the increase in value shall be counted from the acquisition of the bare ownership. Regarding Inheritance and Gift Tax, it must be settled according to the title of constitution, using the value of the property attributed during the dismemberment and the regulations in force at that time.

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