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V1839-19 15 July 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · extinción de condominio

Dissolution of a joint property ownership without excess adjudication is subject to Documented Legal Acts tax

A query was made regarding the applicable taxes and tax base for the dissolution of a co-ownership involving two rural estates. The DGT ruled that, provided there is no excess adjudication, no onerous transfer of assets occurs; instead, the transaction is subject to the Documented Legal Acts tax.

The question raised

Which taxes must be satisfied for the referred deed of extinction of co-ownership and what would be the tax base corresponding to each adjudicatee in the Transfer Tax and Documented Legal Acts Tax.

The DGT's ruling

The dissolution of the community does not constitute a transfer of assets if each co-owner receives what corresponds to them according to their participation quota. In this case, the operation is taxed under the modality of documented legal acts if the requirements of article 31.2 of the TRLITPAJD are met. The tax base shall be the declared value of the asset adjudicated to each co-owner.

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