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V2641-18 1 October 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · transmisión patrimonial

Termination of a reservation agreement and signing a new one with a related party are not subject to ITP or AJD

A query was raised regarding whether terminating a housing reservation agreement and formalising a new one with a person or entity related to the previous buyer triggers taxation. The DGT ruled that the operation does not constitute a transfer of assets nor is it subject to the variable rate of AJD.

The question raised

Whether the mutual termination of the housing reservation and the formalization of a second reservation agreement with a person or entity related to the previous buyer has any incidence in relation to the Transfer Tax and Stamp Duty.

The DGT's ruling

The termination of the reservation agreement and the subsequent formalization of a new agreement with a related party does not constitute an onerous transfer of assets pursuant to Article 7.1 of the TRLITPAJD. Furthermore, it does not constitute a taxable event for the variable rate of the Stamp Duty (AJD) because the operation is not an act subject to registration in the Property, Mercantile, or Movable Property Registries, in accordance with Article 31.2 of the same text.

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