Skip to content
Back to index
V2391-23 5 September 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · disolución de comunidad de bienes

Dissolution of communities with excess allocation compensated in cash is subject to AJD rather than TPO

The taxpayer inquired about the tax treatment of the dissolution of two co-owned properties, where one co-owner is allocated one estate and the other is allocated another, with the excess being compensated in cash. The DGT ruled that, following Supreme Court doctrine, the transaction is subject to Documented Legal Acts (AJD) rather than Onerous Patrimonial Transfers (TPO).

The question raised

Taxation of the dissolution of the co-ownership.

The DGT's ruling

In the dissolution of communities of indivisible assets, if the considerations are equivalent and proportional, there is no onerous transfer of assets according to art. 7.2.B of the TRLITPAJD. The operation shall be taxed under the modality of documented legal acts. The tax base shall be the value of the part of the real estate whose participation ceases and is acquired by the other co-owner. Each co-owner shall be the taxable person for the real estate allocated to them.

Book your free first meeting