On December 5, 2023, the Supreme Court issued judgment 1634/2023, which upholds the appeal for cassation 6962/2022 filed by the State attorney against the judgment of June 29, 2022 issued by the Superior Court of Justice of the Valencian Community in appeal no. 1281/2021, a judgment that is annulled and annulled.

The question that presented objective cassational interest for the formation of jurisprudence consisted in "[…] Determining in which cases the compensation received by the co-owner, to whom the property is not awarded when a condominium is dissolved, entails for said co-owner the existence of a capital gain subject to personal income tax, taking into consideration the possible difference in valuation of that property between the time of its acquisition and that of its award and, where appropriate, whether that compensation was greater than the value of the proportional part that corresponded to him on that property […]".

The Court reiterates the case law doctrine established in its judgment of October 10, 2022, RC 5110/2020, considering that:

"The compensation received by a co-owner, to whom the property is not awarded when the condominium is dissolved, will entail for said co-owner the existence of a capital gain subject to personal income tax, when there is an update of the value of said property between the time of its acquisition and the time of its award and this difference in value is positive."

You can consult the full text of the judgment in the following link