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V1791-22 27 July 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Division of common property without excess value does not generate capital gains or losses for Personal Income Tax purposes

Two siblings, each owning 50% of two properties, wish to dissolve their co-ownership by each being allocated one flat of equal value. The Directorate General for Taxes (DGT) rules that this operation does not constitute a change in the composition of their assets.

The question raised

Taxation of the operation in the Personal Income Tax.

The DGT's ruling

The dissolution of a community of property and the adjudication of the corresponding share does not constitute a change in assets that generates gains or losses. The assets received retain their original value and acquisition date. A change in assets only exists if assets are adjudicated at a value higher than the ownership share of a co-owner.

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