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V3342-15 28 October 2015 · SG de Tributos Locales Criterion in force
OTRO · extinción de condominio

Termination of co-ownership following divorce is not subject to municipal capital gains tax

A query was raised regarding whether the allocation of a property to one spouse following the termination of co-ownership as a result of a divorce is subject to the IIVTNU (Municipal Tax on the Increase in Value of Urban Land). The DGT has determined that the tax does not apply, as the transfer derives from the enforcement of a divorce decree.

The question raised

Whether or not the referred dissolution of the co-ownership of the former marital home between spouses, as a consequence of the dissolution of the marriage by divorce, is subject to tax.

The DGT's ruling

Tax liability does not arise in the transfer of real estate between spouses as a consequence of the enforcement of separation or divorce judgments, regardless of the matrimonial property regime. In this case, although the deed of dissolution of the community property did not mention the regulatory agreement, the coincidence of dates and the judicial approval of the agreement allow for the understanding that the transfer is a consequence of the divorce.

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