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V2921-21 19 November 2021 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · extinción de condominio

Contribution of separate property to a community of property may be exempt from IPT or not subject to ISD

A query was raised regarding whether the dissolution of joint ownership to contribute an asset to a community of property is subject to AJD or IPT. The DGT determines that the operation comprises two independent events: the dissolution of the joint ownership and the contribution to the community of property.

The question raised

Whether the extinction of the co-ownership made in favor of the community property is subject to AJD or to ITP

The DGT's ruling

Upon the dissolution of a co-ownership, if the asset is indivisible and compensated in cash, it is subject to AJD; if it is divisible, it is subject to ITP. Regarding the contribution to the community property, if it is onerous, it is subject to ITP but exempt under art. 45.I.B.3. If it is gratuitous, it is not subject to ITP due to lack of onerousness nor to ISD because the community property is not a taxable person for the tax.

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