Simplify shared property. Save up to 80% in taxes compared to a conventional purchase-sale.
The extinction of condominium is the most efficient way to dissolve a co-ownership: one of the owners buys the other's part paying only the 1.2% of AJD instead of 7-10% of ITP applied in an ordinary purchase-sale.
Why is the extinction of condominium better than a purchase-sale between co-owners?
The extinction of condominium is legally considered the mere specification of a pre-existing right, not a new patrimonial transmission. This legal distinction is what allows unprecedented tax savings.
The Supreme Court and consolidated administrative doctrine support this figure. The DGT has multiple binding inquiries that confirm taxation exclusively by AJD (Documented Legal Acts), legally evading ITP (Property Transfer Tax).
"The extinction of condominium does not imply a patrimonial transmission between co-owners but the mere materialization of a right that already existed in abstracto."
— Consolidated DGT and Supreme Court Doctrine
You only pay AJD: approx. 1.2%
Instead of ITP (7%-10% in Andalusia). For a home of 300,000€, the difference can be 25,000€ to 30,000€ in real savings.
Without Municipal Capital Gains (in most cases)
If the allocation is proportional to the participation quota of each co-owner, no municipal capital gain is generated. Only the excess of allocation is taxed if it exists.
Total legal security before Notary
The process is formalized through a public deed and registration in the Property Registry, guaranteeing the correct allocation and the definitive extinction of the undivided share.
Cases where the extinction of condominium is the answer
Divorce or Separation
The couple wants to dissolve the co-ownership of the family home. One stays with the house, the other receives economic compensation.
Inheritance with Multiple Heirs
One heir wants to keep the property and compensate the rest economically. The cheapest fiscal alternative to purchase-sale.
Business Partners
Two or more people bought a property together for personal use or investment and now want to separate their interests cleanly and efficiently.
Unwanted Co-ownership
Homes bought by parents and children, or acquired under a de facto partnership who no longer live together but continue to share the property.
How the extinction of condominium is formalized
Real Valuation
We determine the current market value for an economically equitable division among co-owners.
Quota Agreement
We draft the agreement where a co-owner allocates 100% compensating the rest economically with the agreed price.
Public Deed
Signing before Notary of the community dissolution document. The existing mortgage can be cancelled in the same act.
AJD Liquidation and Registration
Pago del 1.2% of AJD en Andalucía e inscripción en el Registro de la Propiedad. El proindiviso queda extinguido.
How much do you save exactly?
Example: Home valued at 300,000 €. Two co-owners at 50%. One buys the other's part (150,000 €).
| Fiscal Concept | Ordinary Purchase-Sale | Condominium Extinction |
|---|---|---|
| ITP (Property Transfer Tax) | 10,500 € (7% on 150,000 €) | 0 € — Not applicable |
| AJD (Documented Legal Acts) | Not applicable | 1,800 € (1.2% on 150,000 €) |
| Municipal Capital Gains | Variable (according to years of possession) | 0 € if there is no excess allocation |
| TOTAL TAXES | 10,500 € + Capital Gains | 1,800 € |
| REAL SAVINGS | + 8,700 € (≈ 83% savings) | |
Everything you need to know about the extinction of condominium
Do you have a shared property that you need to resolve?
Tell us your case: number of co-owners, approximate value of the property and if there is a mortgage. We calculate the exact tax savings and explain the process step by step.
