Tax on Property Transfers and Documented Legal Acts (ITP-AJD)
What is ITP-AJD?
The ITP-AJD is a state tax assigned to the Autonomous Communities where the property is located, and it has the scope and conditions set out by the specific regulations of each region.
There are three taxes within the ITP and AJD group:
- Tax on Onerous Property Transfers (TPO) taxes the transfer of property and rights between living individuals not subject to VAT. It also applies to the creation of real rights, loans, guarantees, leases, pensions, and administrative concessions.
- Tax on Documented Legal Acts (AJD) taxes the subscription of notarial, commercial, or administrative documents.
- Tax on Corporate Operations (OS) taxes certain corporate operations, such as company incorporation, increases or decreases in capital, dissolution, or changes in company domicile to Spain.
How is ITP-AJD calculated?
The taxable base for the ITP-AJD depends on the transaction being taxed. However, as a general rule, it is determined by the higher value between the price paid in a transaction or the fiscal value of the property at the time the tax is due.
The fiscal value of residential or parking properties is determined annually by the Directorate-General of the Catastro, taking into account the cadastral data. This value cannot exceed the market value.
For properties with other uses, the fiscal value must be obtained through specific valuation regulations established by the competent authority in each Autonomous Community.
On the taxable base, the tax rate is applied according to the Autonomous Community, which may also apply various discounts.
How can we help reduce it?
- Analyzing the reference value assigned by the Catastro to the property, linked to the cadastral data.
- Requesting and reviewing the fiscal value assigned by the competent authority of the Autonomous Community.
- Challenging the settlement or correcting the self-assessment to rectify cadastral errors.
- Reviewing, if applicable, value verification procedures initiated by the Administration.