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V3008-19 28 October 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · actos jurídicos documentados

Variable AJT tax must be paid on estate modification and separation of a co-owner

A property owner has enquired about the taxes due when dividing an estate into horizontal property to allocate shares to co-owners. The DGT has ruled that the operation involves two taxable events for Stamp Duty (AJD).

The question raised

Which taxes must each of the affected parties pay and in what amount.

The DGT's ruling

The physical modification of the estate and the separation of a co-owner are independent taxable events that are taxed under the variable rate of the Act on Documented Legal Acts (AJD). The modification of the estate has as its tax base the value of the segregated estate, with the co-owners being the taxpayers according to their share. The separation of the co-owner has as its base the value of the adjudicated estate, with the separating co-owner being the taxpayer.

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