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V2439-14 16 September 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · segregación de finca

Segregation of land and dissolution of joint ownership taxed independently via Documented Legal Acts

Co-owners have sought clarification on the taxes due when performing a land segregation followed by the dissolution of their joint property ownership. The Directorate General for Taxes (DGT) has ruled that, as these constitute two distinct agreements within the same document, both are subject to separate taxation under the Documented Legal Acts modality.

The question raised

Which taxes would have to be paid for said deed.

The DGT's ruling

The segregation of a property and the separation of a co-owner constitute two different agreements that must be taxed independently. Segregation shall be taxed at the variable rate for Documented Legal Acts based on the value of the segregated property. The dissolution of the community, provided there are no business activities and the adjudication is proportionate to the ownership interest, shall likewise be taxed for Documented Legal Acts based on the value of the adjudicated property.

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