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V3464-16 20 July 2016 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · exención

Exemption on land transfers limited to Compensation Boards

A query was raised regarding whether the termination of horizontal property and the subsequent allocation of land following demolition could qualify for the exemption under Article 45.I.B.7 of the TRLITPAJD. The Directorate-General for Taxes (DGT) ruled that this exemption applies exclusively to contributions and allocations made by Compensation Boards.

The question raised

Whether it is possible to avail of the exemption established in Article 45.I.B.7 of the consolidated text of the Tax on Property Transfers and Documented Legal Acts.

The DGT's ruling

The exemption provided in Article 45.I.B.7 of the TRLITPAJD only applies to the contribution of land to Compensation Boards and to the allocations made by these boards to the contributing owners. No other transfer carried out outside the urban planning process of the Compensation Board is included. The application of analogy to extend the scope of tax exemptions is prohibited pursuant to Article 14 of the General Tax Law.

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