Skip to content
Back to index
V3129-23 4 December 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Horizontal division and dissolution of co-ownership do not trigger capital gains for Income Tax if ownership shares are respected

The taxpayer asks how to determine the acquisition value for Income Tax purposes in the event of a horizontal division and the dissolution of a co-ownership. The Tax Agency responds that these operations do not alter the composition of assets and do not allow for the updating of values, unless there are excesses in the allocation of shares.

The question raised

Determination of the acquisition value to calculate the potential capital gain or loss for Personal Income Tax purposes in both horizontal division and the extinction of a co-ownership.

The DGT's ruling

Horizontal division does not entail a change in assets, maintaining the value and acquisition date of the parent property. The dissolution of a community of property also does not constitute a change in assets, provided that the allocation corresponds to the ownership share. Only if assets are allocated at a value exceeding the participation share will a capital gain or loss be generated. In such cases, the values of the received assets cannot be updated.

Book your free first meeting