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V2742-20 7 September 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
ITPAJD · permuta

Land grouping may be taxed as a barter and community dissolution as documented legal acts

A taxpayer queried the ITP, AJD, and IRPF taxation of operations involving the grouping, segregation, and dissolution of a co-ownership of 22 rural properties. The DGT ruled that grouping constitutes a barter subject to ITP, whereas segregation and the dissolution of the co-ownership without excess adjudication are subject to AJD.

The question raised

1) Taxation under the Transfer Tax and Stamp Duty regarding the described operations. Specifically:

The DGT's ruling

The grouping of estates from different community of property entities constitutes a barter subject to Transfer Tax (ITP). Grouping and segregation are not onerous transfers, but are taxed under the Stamp Duty rate. The termination of co-ownership, provided there are no excess adjudications, is not a transfer of assets, but a mere specification of rights subject to the Stamp Duty rate. For Personal Income Tax (IRPF) purposes, grouping generates capital gains or losses from barter, but the subsequent dissolution of the community does not alter the composition of the assets if adjudicated according to the ownership share.

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