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V2300-17 12 September 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · comunidad de bienes

Dissolution of two distinct joint ownerships must be treated as separate legal transactions

A taxpayer inquired about the taxation of the dissolution of two co-ownerships (one originating from a donation and the other from an inheritance) to allocate a flat to each sibling. The DGT ruled that, because they have different origins, they do not constitute a single joint ownership and must be treated separately to prevent the operation from being classified as a barter.

The question raised

Taxation of the extinction of co-ownership.

The DGT's ruling

As there exist two communities of property with different origins (inter vivos and mortis causa), the dissolution must be carried out independently. If they are dissolved separately and excess adjudications in money are compensated, taxation will only apply to documented legal acts. If the co-owners exchange their undivided shares instead of dissolving each community, the operation shall be a barter subject to onerous transfers of assets.

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