Doctrine by topic · DGT Observatory

Contract Termination — 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

Stable position High confidence 52 rulings · 2014–2025

Current position

The recovery of ownership through contract termination does not constitute a new onerous transfer of assets, but rather the restitution of the item as the original act becomes void. If the termination is formalized through a court judgment, it is not subject to the Documented Legal Acts (AJD) modality as there is no public deed. Conversely, if a notarial deed is executed to register the recovery, it could be subject to the gradual AJD tax rate.

The DGT's position remains stable regarding the fact that termination is not a new transfer, but a restitution. The effects have been specified according to the method of termination: the judicial route avoids taxation via AJD, whereas termination by mutual agreement through a deed is treated as a new act subject to taxation.

Turning points

  1. V0487-16

    Distinguishes the treatment according to the method of termination: the judicial route allows for a tax refund, while termination by mutual agreement is considered a new act subject to taxation.

  2. V2361-25

    Clarifies that recovery through a court judgment does not trigger liability for the Documented Legal Acts (AJD) modality due to the absence of a public deed.

Analysis based on 51 of 52 rulings with a stated position. Updated 23 September 2026.

Rulings on this topic

24
V1071-21 23 Apr 2021

Recovery of ownership through contract rescission is not subject to transfer tax

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
transmisiones patrimoniales onerosasrecuperación del dominiocondición resolutoriaactos jurídicos documentadosresolución de contrato TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 7.1.aTRITPAJD — RDLeg 1/1993 de ITP y AJD art. 30.1
Affects CompanyExpat · Non-residentIndividual
V0764-19 8 Apr 2019

Recovery of property through contract rescission is subject to Stamp Duty

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
condición resolutoriatransmisiones patrimoniales onerosasactos jurídicos documentadosrecuperación del dominioresolución de contrato TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 31.2TRITPAJD — RDLeg 1/1993 de ITP y AJD art. 57.1
Affects CompanyExpat · Non-residentIndividual

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