BackThe General Directorate of Taxes (DGT) has issued a relevant resolution regarding the dissolution of a community of assets formed by a single asset, which is allocated to one of the co-owners, who financially compensates the rest of the co-owners. In this context, where excess allocation is inevitable, it has been determined that the taxable event of the Tax on the Increase in Value of Urban Land (IIVTNU), commonly known as municipal capital gains tax, does not occur.
In a future transfer of the aforementioned property, the period of value increase generation must be computed from the date the siblings acquired ownership of it by inheritance, rather than from the date of complete allocation to the co-owner.
The case in question involves a person and their three siblings, who jointly acquired ownership of the property by inheritance, distributing the ownership equally. After the death of two of the siblings, the corresponding parts of the ownership were inherited by two daughters of one of the deceased and by a niece of the subject respectively.
The dissolution of the community of assets concerning the property in question implies the total allocation of the property to the niece, who financially compensates the other co-owners for their percentage of participation. Since the property is the sole asset of the community of assets, it is concluded that the taxable event of the IIVTNU does not occur.
However, for future transfers of the allocated property, the start date of the value increase generation period will be the date the siblings acquired ownership by inheritance, not the date of complete allocation to the co-owner. This determination provides legal clarity and certainty regarding tax obligations in similar cases.
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