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V1592-24 1 July 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
OTRO · disolución de comunidad de bienes

Dissolution of joint property ownership without excess adjudication is subject to Stamp Duty

The applicant inquired about the taxation of the dissolution of three joint property ownerships through the allocation of one property to each sibling. The DGT ruled that if the allocation is proportional to the ownership share, there is no onerous transfer of assets, but Stamp Duty (AJD) is still applicable.

The question raised

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

The DGT's ruling

In the dissolution of communities of property over indivisible assets, if the benefits are equivalent and proportional to the shares, there is no onerous transfer of assets. In this case, the transaction is taxed at the progressive rate for documented legal acts. The tax base shall be the value of the portion of the real estate corresponding to the co-owners whose participation is extinguished. For Personal Income Tax purposes, the dissolution does not generate capital gains or losses provided that the adjudication corresponds to the ownership share.

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