Skip to content
Back to index
V1916-23 4 July 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · reconocimiento de dominio

The deed of recognition of ownership by judicial sentence is subject to tax on documented legal acts

A query is made as to whether a deed of recognition of ownership, executed by children following a judicial sentence regarding a trust business, is subject to the ITPAJD. The DGT determines that there is no transfer of assets as it is a mandatory rather than a voluntary act, but it is subject to the modality of documented legal acts.

The question raised

Whether the public deed of recognition of property rights in favor of the consultant and her ex-husband is subject to the Tax on Property Transfers and Documented Legal Acts.

The DGT's ruling

The recognition of ownership does not constitute a transfer of assets if it is not a voluntary act, but rather a mandatory compliance derived from a judicial sentence. Nevertheless, the public deed must be taxed under the modality of documented legal acts, notary documents, as it meets the requirements of being a first copy regarding a valuable asset, registrable in the Property Registry, and not subject to other taxes mentioned in the law.

Book your free first meeting