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V2581-19 19 September 2019 · SG de Tributos Locales Criterion in force
OTRO · iivtnu

Transfer of urban property for IIVTNU occurs upon delivery of possession or execution of a public deed

The applicant inquired about the timing for filing IIVTNU and Property Transfer Tax returns following a private purchase and sale agreement. The DGT clarified that the IIVTNU accrues when property is transferred through the delivery of possession or the execution of a public deed, rather than by the mere signing of a contract.

The question raised

When must the tax returns for the Tax on the Increase in Value of Urban Land and the Tax on Transfer of Property be filed?

The DGT's ruling

The accrual of the IIVTNU occurs on the date of the transfer of ownership, which requires the theory of title and mode: the contract is the title, but the transfer is completed with the delivery of possession (tradition). If the sale is via a private document, the transfer occurs with the actual and effective delivery or with the subsequent execution of a public deed, which is equivalent to delivery. The deadline for filing the tax return is thirty business days from the date of accrual for inter vivos acts.

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