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V1644-19 2 July 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · cambio de uso

Deed for change of property use is subject to AJD tax if the change involves a valuable thing

A query was raised regarding whether a deed to change the use of a cheese factory into a funeral parlour with a crematorium is subject to ITP and AJD tax. The DGT indicates that it will be subject to Stamp Duty (AJD) if the change of use is considered a valuable thing.

The question raised

Whether the aforementioned deed for change of use would be subject to Transfer Tax and Stamp Duty.

The DGT's ruling

For a deed of change of use to be subject to the variable rate of Stamp Duty (AJD), it must have as its object a valuable amount or thing. If the change of use does not alter the cadastral value and the uses have the same urban planning status, it would not be taxed. However, if the urban planning regulations consider them to be different elements, the property subject to the change constitutes a valuable thing and the deed shall be taxed.

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