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V1510-19 21 June 2019 · SG de Tributos Locales Criterion in force
OTRO · impuesto sobre bienes inmuebles

Property tax (IBI) liability begins from the accrual period following the transfer date in auction adjudications

A query was raised regarding whether an acquirer of a property through a judicial auction is liable for Property Tax (IBI) for periods prior to taking possession, or only from the moment possession is obtained. The Directorate General for Taxes (DGT) ruled that the obligation to pay arises from the accrual period following the date of the property transfer.

The question raised

Whether it is appropriate to tax the acquirer with the Real Estate Tax for all non-prescribed periods despite not having acquired possession and ownership of said property until the aforementioned date, or only for the periods from which possession of the dwelling was obtained.

The DGT's ruling

The transfer of ownership by adjudication in a judicial auction occurs on the date the certificate is issued by the Clerk of the Administration of Justice with the adjudication order. Therefore, the acquirer shall be the taxpayer for the Real Estate Tax (IBI) from the accrual following said transfer date.

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