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V1895-19 18 July 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · vinculación ob rem

Taxable base for 'ob rem' linking of properties is the declared value of the annexed property

A query was raised regarding the taxable base for Stamp Duty (Documented Legal Acts) in the case of the 'ob rem' linking of two hotel properties. The Directorate General for Tax (DGT) ruled that the taxable base shall be the declared value of the property being linked, excluding the value of the principal property.

The question raised

What is the tax base for the Transfer Tax and Documented Legal Acts Tax, under the documented legal acts modality, specifically regarding notarized documents, for the in rem encumbrance of these estates?

The DGT's ruling

The in rem encumbrance of estates is registrable in the Land Registry as it limits their free disposal. Since it has economic content, the tax base is determined according to the general rule of Article 30.1 of the TRLITPAJD. Therefore, the base shall be the declared value of the ancillary estate being linked to the principal one, excluding the value of the latter.

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