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V2077-18 12 July 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
OTRO · subsanación de error

Correcting an error in flat allocation does not trigger ITP, AJD, IIVTNU, or IRPF taxation

A query was raised regarding whether correcting an error in the initial allocation of flats via public deed triggers tax liabilities. The DGT ruled that if it is a mere correction of a numbering error that does not transfer ownership or alter the land value, no taxable event occurs.

The question raised

Confirm that, given that no transfer occurs, but rather the rectification of an error due to the manifest nullity of the initial adjudication of the apartments, no taxable event occurs regarding the Transfer Tax and Stamp Duty, the Tax on the Increase in Value of Urban Land, and Personal Income Tax.

The DGT's ruling

The rectification of an error in a horizontal division deed does not constitute an onerous transfer of assets nor is it subject to the variable rate of Transfer Tax and Stamp Duty if there is no modification to the value of the land or the construction. Regarding the Tax on the Increase in Value of Urban Land and Personal Income Tax, no taxable event occurs if there is no transfer of ownership, but rather a rectification of the identification of the properties. If a swap were performed instead of a rectification, taxation would occur.

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