Back to index
V1712-17 3 July 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · transmisiones patrimoniales onerosas

No ITP on sales without transfer of possession; earnest money deposit acts subject to AJD

A query was raised regarding whether a sale without the transfer of possession is subject to ITP and whether the deposit of penitential earnest money acts in Catalonia is subject to AJD. The DGT ruled that without the transfer of possession, there is no transfer of ownership, and that the earnest money act is subject to the variable rate of AJD as it is capable of being registered.

The question raised

There are two questions raised:

The DGT's ruling

For the ITP taxable event to exist, there must be a transfer of goods or rights, which requires the concurrence of title and mode (delivery). A sales contract without delivery of the item does not constitute a transfer of ownership. On the other hand, the notarial deed of deposit of penitential earnest money according to the Civil Code of Catalonia is subject to access to the Property Registry, and therefore is taxed at the variable rate of AJD, regardless of whether its registration is agreed upon or not.

Book your free first meeting