Grouping of estates will be taxed on the combined value of all integrated properties

The unification of rural properties into a single registry unit entails a series of tax obligations that must be calculated with precision. Recently, the Dirección General de Tributos (DGT) has clarified how the tax base should be determined in the Transfer Tax and Documented Legal Acts Tax (ITPAJD) when proceeding with the grouping of estates.

What the DGT has resolved

The query concerned whether the tax base in the Documented Legal Acts modality should be calculated individually for each estate incorporated into the grouping process, or whether the combined value of all estates forming the new unit should be considered.

The binding body has resolved that, upon the constitution of a new registry estate and the disappearance of the original ones, the tax base consists of the value of the grouped estates. This criterion applies regardless of the acquisition date of each property or its previous individual value, as the taxable event falls upon the formation of the new single estate.

What this means for you

If you are the owner of rural estates and decide to carry out grouping operations to unify your registry area, you must take into account that the tax calculation will not be performed on the value of the estate being incorporated in each act, but on the total value resulting from the union of all properties.

This criterion implies that the value of the new single estate is what will determine the amount of the tax base, which represents an operational difference compared to the individualized valuation of each plot before its aggregation.

What you should do

In the event of such an operation, it is necessary to perform a prior analysis of the valuation of all the estates that will integrate the new registry unit. Since the tax base will be the combined value, it is fundamental to have a precise valuation of the totality of the assets to determine the exact fiscal impact of the grouping deed. It is recommended to assess each particular situation to ensure that the calculation of the tax base strictly adheres to current regulations and this DGT criterion.