A Supreme Court Ruling on stamp duty has now come into force. Many people approach us to do changes of ownership of property. Also known as dissolution of joint ownership, and division of joint tenancy.
Following the Madrid Supreme Court Ruling of March 2019 stamp duty will now only be paid on the outgoing share in a property transfer. As opposed to the original tax base of 100% of the value of the property up until now. This is when a change of ownership of property is made to only one existing owner from two or more.Types of Transaction
Types of Transactions
These types of transactions tend to be when a couple are divorcing, or separating. And the property is going into only one name. Or we have had friends as co-owners wishing to split the ownership and reduce it to one. Or business partners co-owing going separate ways. This case has been rumbling through the Courts for years but is now law.
Supreme Court Judgement on Stamp Duty
The Supreme Court Judgement 20/3/2019 of Madrid reduces stamp duty to only payment on the outgoing share. They say it is logical that the whole value of the property is not used. Especially as one party is already a part owner. The ruling has links as to why capital gains tax does not have to be paid on a dissolution of joint ownership.
This is very good news for our clients. Please see our articles on changes of ownership or https://www.spanishsolutions.net/legal-issues-in-spain/extinguishing-a-tenancy-or-division-of-tenancy-in-common-on-a-property/ for further details about this transaction. Please contact us for help with dissolution of joint ownerships or taking one name off the deeds.