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V3068-18 28 November 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · extinción de condominio

Capital gains are generated in the dissolution of co-ownership if the allocation exceeds the ownership share

The taxpayer wishes to dissolve the co-ownership of a dwelling to allocate it to her sister. The DGT responds that if the allocation does not correspond to each party's ownership share, a change in assets occurs, generating a capital gain or loss.

The question raised

Taxation of the aforementioned operation under Personal Income Tax.

The DGT's ruling

The dissolution of a community of property does not constitute a change in assets provided that the allocation corresponds to the ownership share. If assets are allocated at a value exceeding the share, a capital gain or loss is generated for the co-owner who transfers the excess, regardless of whether there is cash compensation. The transfer value shall be the market value, and the transitional regime of the ninth transitional provision shall apply if the asset was acquired before December 31, 1994.

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