info@bravolegal.es
Tlf: (34) 952 46 34 99

Dissolution of Joint Property Ownership

"Extinción de Condominio"
dissolution-of-joint-property-ownership

Dissolution of Joint Property Ownership

Dissolution of Joint Property (extinción de condominio in Spanish) is the prescribed procedure to acquire title to a property, when one of the co-owners wants to buy from the other.

It is very similar to a sale, because there must be a payment, which in this case is named “compensation”, to be received by the co-owner who is leaving the partnership, but there are two significant advantages:

  • Instead of an 8% Transfer Tax, the “buyer” will only have to pay 1,5% on the price to be paid (not on the total value of the property)
  • Plusvalia tax does not apply

There are two requirements to be eligible for this advantaged tax regime when proceeding with a Dissolution of Joint Property, and it is highly advisable to take legal advice to make sure that everything is done properly:

  • The compensation received by the “seller” must be 50% of the declared value of the property (and for tax reasons this cannot be a “nominal value”, but should be a real market value)
  • And although it seems logical, the buyer must already been owner of a share of the property (otherwise this wouldn’t be a termination of co-ownership!)

If you are interested in doing a Dissolution of Joint Property , and you would like to receive a no-obligation quotation for our services, please fill out the following form, providing us with some information about your case (property value, location of the property, etc.) and we will get back to you immediately.

Uso de cookies

Este sitio web utiliza cookies para que usted tenga la mejor experiencia de usuario. Si continúa navegando está dando su consentimiento para la aceptación de las mencionadas cookies y la aceptación de nuestra política de cookies, pinche el enlace para mayor información. ACEPTAR

Aviso de cookies