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V3911-15 4 December 2015 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · permuta

Redistribution of shares in undivided property is considered a barter subject to Transfer Tax

Consultants seek to divide rural estates held in a community of property so that each co-owner holds complete plots. The DGT rules that, as co-ownership persists in other properties, the operation constitutes a barter rather than a dissolution of the community.

The question raised

Value of rural properties.

The DGT's ruling

The described operation constitutes a barter of shares in the quotas of the properties, as the community of property is not extinguished since the undivided interest in other real estate is maintained. The tax base is the real value of the transferred assets, which coincides with the market value. Each party to the barter shall be taxed on the verified value of the assets acquired.

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