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V1797-20 5 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · disolución de comunidad de bienes

Dissolution of co-ownership with cash compensation may be exempt from ITPAJD and IIVTNU, but subject to IRPF

A taxpayer has queried the tax treatment of dissolving a community of property where each former spouse is allocated a property of different value, with one party receiving cash compensation. The Tax Agency has determined that the transaction does not constitute an onerous transfer nor does it trigger municipal capital gains tax (IIVTNU) provided certain requirements are met, but it may result in a capital gain or loss for Income Tax (IRPF) purposes.

The question raised

Tax treatment of the operation described in the Transfer Tax and Documented Legal Acts Tax, the Tax on the Increase in Value of Urban Land, and the Personal Income Tax.

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