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V1957-20 16 June 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de bienes

Sale of common property by a homeowners' association generates capital gains or losses attributable to co-owners

A query was made regarding the Personal Income Tax (IRPF) treatment of the sale of a flat owned by a homeowners' association. The Directorate General for Taxes (DGT) ruled that homeowners' associations are considered communities of property, and any income is attributed to the members or co-owners.

The question raised

Tax treatment of said sale in the Personal Income Tax (IRPF) of the spouses.

The DGT's ruling

Homeowners' associations are communities of property whose income is attributed to the co-owners. The sale of the real estate generates a capital gain or loss that must be calculated proportionally for each individual. The transfer value shall be the actual amount of the disposal (deducting expenses and taxes) multiplied by the ownership coefficient prior to the segregation. The acquisition value shall be the difference in ownership coefficients applied to the acquisition cost plus expenses and taxes.

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