Taxable base determination in the transfer of real estate with distinct properties

The determination of the taxable base in the Transfer Tax, Documented Legal Acts and Business Activity Operations Tax (ITPAJD) is a critical aspect of real estate acquisition. A recent binding ruling from the Directorate General of Taxes (DGT) has clarified the calculation rules when the transaction involves properties with different registry and cadastral references.

What the DGT has ruled

The DGT establishes that, when dealing with two different registry and cadastral properties, the taxable base for the transfer of each will be its own reference value. This calculation must be performed independently for each property, without considering the total purchase amount as an indivisible unit.

The criteria indicate that the taxable base will be the reference value of each property, unless the agreed price or the declared value is higher. It is fundamental not to confuse the reference value with the cadastral value. In the event that no certified reference value exists, the taxable base will be determined by the highest of the following amounts: the declared value, the agreed price, or the market value.

What it means for you

If you acquire real estate composed of several registry or cadastral properties, the tax will not be calculated on a single mass of value, but on each unit individually. This implies that you must verify the specific reference value for each of the properties that make up the transaction.

This criterion directly affects individuals performing real estate purchase and sale transactions with this structure. The application of the rule requires a precise breakdown of values to avoid errors in the tax settlement, especially when comparing the reference value against the acquisition price or the market value.

What you should do

In an operation of this type, it is necessary to correctly identify the registry and cadastral situation of each property. You should check for the existence of a certified reference value for each property and compare it with the transaction price. Since the regulations require the application of the highest amount, it is necessary to analyze each real estate unit separately to ensure that the declared taxable base is correct according to current regulations.