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V1838-19 15 July 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · reanudación del tracto sucesivo

Resumption of successive chain of title via notary file subject to ITP, unless prior payment is proven

A query was raised regarding whether formalising a file to resume the successive chain of title for inherited properties is subject to ITP or only to AJD. The DGT ruled that the notary file constitutes an independent taxable event and represents an onerous transfer of assets.

The question raised

Whether, given that the replaced title is of a succession nature and, therefore, not subject to Transfer Tax, this would determine that the proceeding to resume the chain of title would not be considered a transfer of assets for the purposes of assessment and payment of Transfer Tax, and whether, in such a case, the notarial act would be subject to the graduated levy of the Documented Legal Acts Tax, or only when the replaced succession title has benefited from the tax statute of limitations.

The DGT's ruling

The formalization of a notarial proceeding to resume the successive chain of title constitutes an onerous transfer of assets subject to Transfer Tax (ITP), unless it is proven that the tax has been satisfied or that an exemption/non-liability applies to the transfer being replaced and for the same assets. The taxable event is the issuance of the supplementary title and not the previous title; therefore, the statute of limitations of the replaced title is not applicable. The taxable person is the one who initiates the proceeding.

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