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V1625-23 8 June 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · extinción de condominio

Dissolution of co-ownership with property allocation is not subject to onerous transfer tax if unavoidable excesses occur

A taxpayer queried the taxation of the dissolution of a co-ownership involving two properties, where one was allocated to each co-owner. The DGT ruled that if the allocation is necessary to dissolve the community and ownership shares are respected, it does not constitute an onerous transfer, but is instead subject to tax on documented legal acts.

The question raised

Taxation of the dissolution of co-ownership.

The DGT's ruling

In the dissolution of communities of property over indivisible real estate, if the contributions are equivalent and proportional, there is no onerous transfer of assets according to art. 7.2.B of the TRLITPAJD. The operation shall be taxed under the stamp duty rate, even if the compensation for the excess is carried out through the delivery of other assets that were already held in co-ownership or the assumption of debts. The tax base shall be the value of the portion of the real estate acquired ex novo upon the disappearance of the other co-owner's interest.

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