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V2327-22 7 November 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · operaciones societarias

Contribution of real estate with assumption of debt creates two transactions subject to ITPAJD

An entity intends to contribute real estate under construction to new companies, including the assumption of the associated debt. The DGT has determined that the operation constitutes two distinct transactions: one involving corporate operations and another involving the settlement of assets in payment.

The question raised

The tax treatment that should be applied to this operation for the purposes of the Transfer Tax and Documented Legal Acts Tax.

The DGT's ruling

The formation or increase of capital through the contribution of real estate is taxed as corporate operations, although it is exempt under the TRLITPAJD. The assumption of debt is not a taxable event in itself. The allocation of the real estate in payment of the debt is a separate convention that may be taxed as onerous transfers of property or, if not subject to VAT, by the variable rate for documented legal acts.

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