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V1773-20 3 June 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · cesión de derechos

Transfer of groundwater rights in the Upper Guadiana subject to ITP and AJD taxes

A query was raised regarding whether the transfer of groundwater rights between private parties is subject to ITP (Transfer Tax) and AJD (Stamp Duty). The DGT ruled that these transfers, by transforming into administrative concessions, constitute a taxable event for these taxes.

The question raised

First question posed: Are the transfers of groundwater use rights between private individuals subject to the Transfer Tax and Documented Legal Acts Tax? In particular, when they are acquired from a private individual who does not act as an entrepreneur or professional.

The DGT's ruling

The transfer of groundwater use rights regulated in the 14th Additional Provision of the TRLA constitutes the creation of an administrative concession, which is a taxable event for ITP and AJD. The taxable person is the concessionaire (the acquirer) and the accrual occurs when the concession title is formalized by the Basin Authority. The applicable rate shall be that of the Autonomous Community for administrative concessions or, failing that, the rate for movable property.

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