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V1596-22 1 July 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · consolidación del dominio

Consolidation of ownership through extinction of usufruct is subject to ITPAJD but not IIVTNU

A taxpayer queried whether the consolidation of full ownership of a property, following the death of the usufructuary, triggers taxation under ITPAJD and IIVTNU. The DGT ruled that ITPAJD is applicable to the portion not previously taxed upon the acquisition of the bare ownership, but no IIVTNU is due as no transfer of title has occurred.

The question raised

Taxation of the consolidation of ownership in the Transfer Tax and Documented Legal Acts Tax.

The DGT's ruling

In the ITPAJD, the consolidation of ownership due to the extinction of the usufruct obliges the bare owner to pay tax on the value of the right entering their assets, applying the percentage for which they did not pay tax upon acquiring the bare ownership. Regarding the IIVTNU, the extinction of the usufruct due to the death of the usufructuary does not constitute a transfer or a constitution of a real right, but rather a recovery of powers, therefore the taxable event does not occur. For future transfers, the period of value increase shall be counted from the acquisition of the bare ownership by the company in 1999.

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