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V3092-17 28 November 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
OTRO · propiedad horizontal

Modification of horizontal division is not subject to AJT if construction cost or land value remains unchanged

A query was raised regarding whether a deed rectifying the horizontal division of a development is subject to Stamp Duty (AJD). The DGT ruled that the mere modification of coefficients or floor areas does not trigger AJD if the value of the land or the construction remains unchanged; however, converting private elements into common elements (or vice versa) does incur taxation.

The question raised

1st: Whether the deed of rectification of the previous horizontal division would be subject to the Documented Legal Acts modality and, if applicable, what the tax base and tax rate would be and whether it would have any tax benefit.

The DGT's ruling

The modification of the horizontal division is not subject to property transfers or the gradual AJD tax if the cost of the new work or the value of the land is not altered. However, the conversion of private elements into common elements, or vice versa, constitutes a transfer of assets that will be taxed under ITP and AJD (if onerous) or under ISD (if gratuitous). Furthermore, the deed of assignment or disassignment of said elements will be subject to the gradual AJD tax due to having a valuable and registrable object.

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