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V1669-19 8 July 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · actos jurídicos documentados

Deed of cancellation of new build and horizontal division not subject to Stamp Duty on documented legal acts

A query was raised regarding whether a deed cancelling a new build and horizontal division that has not been materialised should be subject to Stamp Duty on documented legal acts. The DGT ruled that it is not taxable as it lacks valuable content.

The question raised

Whether said cancellation deed must be taxed under the concept of documented legal acts.

The DGT's ruling

For a document to be subject to tax on documented legal acts, it must comply with the requirements of Article 31.2 of the TRLITPAJD: it must be the first copy of a notarial deed, be registrable in the Land Registry, have valuable content, and not be subject to ITP or ISD. The deed of cancellation of new construction and horizontal division does not have valuable content, therefore it does not meet the requirements for taxation.

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