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Horizontal Division: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 49 rulings · 2017–2026

Current position

Horizontal division does not alter the value or the acquisition date of the original assets. The declaration of new construction is taxed based on the actual cost of the work, whereas horizontal division is taxed based on the cost of the work plus the value of the land. The cancellation of the declaration of new construction and horizontal division is not subject to the variable rate of AJD (Stamp Duty) due to a lack of valuable content.

The DGT's position remains stable regarding the nature of horizontal division and its impact on the acquisition value. The elements comprising the tax base in the declaration of new construction and horizontal division have been specified. Likewise, the non-subjectivity to the variable rate of AJD in cancellation acts has been clarified.

Turning points

  1. V0297-22

    Specifies that in the dissolution of a condominium, the excess in adjudication is only taxed for property transfers if it is not possible to create lots with a smaller excess.

  2. V0117-25

    Establishes that the deed of cancellation of the declaration of new construction and horizontal division is not subject to the variable rate of AJD as it does not have as its object a valuable amount or thing.

Analysis based on 48 of 49 rulings with a stated position. Updated 19 September 2026.

Rulings on this topic

24
V0215-23 10 Feb 2023

Transfer of adjacent land subject to ITP if onerous or Gift Tax if gratuitous

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
transmisiones patrimoniales onerosastransmisiones lucrativasvalor de referenciadivisión horizontalsujeto pasivo TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 2TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 4
Affects CompanyExpat · Non-residentIndividual

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