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V1612-23 7 June 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · extinción de condominio

Dissolution of co-ownership with unavoidable excesses taxed under AJD rather than onerous transfers

A query was raised regarding the taxation of the dissolution of a co-ownership involving 8 properties with equivalent lots. The DGT ruled that if the excesses in adjudication are unavoidable due to the indivisibility of the assets, the transaction is subject to Documented Legal Acts (AJD) tax rather than Onerous Patrimonial Transfers (ITP).

The question raised

Taxation of the dissolution of a condominium.

The DGT's ruling

In the dissolution of communities of property over indivisible real estate, if the assets are adjudicated to a single co-owner by compensating for the excess, the operation is not subject to transfer tax on onerous transfers if the requirements of indivisibility, equivalence, and proportionality are met. In this case, taxation corresponds to the modality of documented legal acts. The tax base shall be the value of the portion of the real estate acquired ex novo. The taxpayer is the co-owner to whom the real estate is adjudicated.

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