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V3265-23 19 December 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · comunidad de bienes

Expropriation compensation for co-owned property is allocated to each co-owner based on their share

A query was raised regarding the taxation of income derived from the compulsory expropriation of property owned by a community of assets. The Directorate General for Taxes (DGT) ruled that the income is attributed to each co-owner according to their percentage of ownership, resulting in a capital gain or loss.

The question raised

1st Taxation of income derived from compulsory expropriation in the income tax return of each co-owner.

The DGT's ruling

Income from the community of property is attributed to the co-owners according to their agreements or participation. Expropriation generates a capital gain or loss calculated by the difference between the acquisition value and the transfer value. Each owner must calculate their proportional values and the gain is included in the savings tax base. The community of property must file form 184 reporting the income attributed to each member.

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