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V1667-17 27 June 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · comunidad de bienes

Dissolution of joint ownership assets taxed via documented legal acts if allocation is proportional

Consultants inquired about the taxation of the dissolution of three different joint ownership assets. The DGT ruled that the termination of a joint ownership through proportional allocation does not constitute a transfer and is subject to tax on documented legal acts, provided there are no excesses in the allocation.

The question raised

Taxation of the operation.

The DGT's ruling

The dissolution of a community of property through the adjudication of assets in proportion to the ownership share does not constitute a transfer of assets. In this case, it is taxed under the modality of documented legal acts if the requirements of a public deed, being valuable, and being registrable are met. If a co-owner receives assets with a value exceeding their share, such excess does constitute an onerous transfer. To avoid taxation on onerous transfers of indivisible assets, the compensation for the excess must necessarily be made in cash.

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