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V2853-18 31 October 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · expediente de dominio

Ownership proceedings for property registration are subject to ITP if previous transfer tax has not been proven paid

A query was raised regarding whether a notarial ownership proceeding to register a property for the first time is subject to Transfer Tax (ITP) if the tax for the current sale has already been paid. The DGT ruled that the proceeding constitutes an independent taxable event if its purpose is to remedy the lack of title from a previous transfer.

The question raised

Whether, having satisfied the Transfer Tax and Stamp Duty for the transfer title, the document concluding the title deed file is classified as a taxable transfer for tax purposes, or whether it would be non-taxable or exempt by virtue of Article 7.2C) of Royal Legislative Decree 1/1993 approving the Consolidated Text of the Law on Transfer Tax and Stamp Duty.

The DGT's ruling

The title deed file constitutes a taxable event for ITP and AJD pursuant to Article 7.2.C) of the TRLITPAJD. It shall not be taxed if it is proven that the tax or exemption has been satisfied for the transfer whose assets are supplemented by said file. In this case, the file seeks to supplement the lack of title for a transfer prior to the taxpayer's purchase; therefore, the settlement of that previous transfer is independent of the one carried out for the current acquisition.

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