Divorce or separation
One of the two keeps the shared home and compensates the other, without selling to a third party.
Joint property dissolution · Spain
A shared property, a single owner.
With a joint property dissolution one of the co-owners keeps 100% of the home and compensates the other, with a tax advantage over a sale. We also handle the mortgage. Free study, no obligation.
Dissolution · at a glance
- 100%of the property for a single party
- AJDpays AJD, not ITP (cheaper)
- 30+lenders to resolve the mortgage
- 24hfor a first answer
Free, no-obligation study.
What is joint property dissolution?
It's the operation by which a property owned by several people becomes owned by just one, who financially compensates the rest for their share.
When two or more people share ownership of a property (a co-ownership or "proindiviso") and one of them wants to keep the whole home, joint property dissolution — known in Spain as extinción de condominio — is the usual route. One party acquires the other's share and pays their compensation. It's very common after a divorce or separation and in inheritances with several heirs.
When is it used?
Inheritance between siblings
Several heirs share a house and one wants to keep it, compensating the others.
End of a co-ownership
Partners, an unmarried couple or relatives who bought together and decide to split the property.
The tax advantage: AJD instead of ITP
The big difference compared with buying "the other half" is the tax. A sale pays ITP (Transfer Tax), while joint property dissolution usually pays AJD (Stamp Duty), at a much lower rate.
| Operation | Tax | Indicative rate* |
|---|---|---|
| Buying the half (sale) | ITP | 6–10% |
| Joint property dissolution | AJD | 0.5–1.5% |
*Rates depend on each region and on the specific situation. This is not tax advice: confirm it with your advisor. We help you estimate the real cost in the free study.
And the mortgage? The part many forget
If the home has a mortgage with both holders, signing the dissolution before the notary isn't enough: the bank must release the co-owner who leaves. Otherwise they would still be liable for the debt even without owning the home. This is solved with a novation (modifying the current mortgage) or a new mortgage in the name of whoever keeps the home.
This is where we add the most value: we study whether the person keeping the home can take on 100% of the mortgage and negotiate with 30+ lenders for the best conditions on that novation or new mortgage, coordinating everything with the signing of the dissolution.
What you need to get started
- Agreement between the parties on who keeps the home and the compensation.
- Details of the property (land registry extract, cadastral reference) and the co-ownership.
- If there is a mortgage, the loan and holders' details.
- That whoever keeps the home has the repayment capacity to take on the mortgage, if any.
No agreement yet? We can also guide you on the options before taking the step. We look at it with no obligation.
How we help
4 steps.
Zero
surprises.
We coordinate the financial side of your joint property dissolution, from the first call to signing.
01
First call
You tell us the situation: co-owners, property and mortgage. No obligation.
02
Analysis & numbers
We estimate compensation, taxes (AJD) and the feasibility of the mortgage.
03
We negotiate the mortgage
We look for the best novation or new mortgage among 30+ lenders.
04
Sign & close
We coordinate notary and bank. Our fee only if you sign.
Frequently asked questions
Dissolution: common questions.
It's the operation by which a property owned by several people becomes owned by just one, who keeps 100% of the property and financially compensates the others for their share. It's common in divorces, separations and inheritances.
Unlike a sale, joint property dissolution usually pays Stamp Duty (AJD), whose rate is much lower than the Transfer Tax (ITP) of a purchase. The exact rate depends on the region and each case.
The person keeping the home normally has to take on 100% of the mortgage, and the bank must release the co-owner who leaves (novation or new mortgage). At MG Credit we manage that part and negotiate it with 30+ lenders.
Generally yes, because it pays AJD instead of ITP, which usually means a significant saving compared with buying half. Each case is different: we calculate it with you in the free study.
The initial study is free and with no obligation. We only charge a fee if you finally sign the operation we managed and negotiated for you.
Free study
We resolve your joint property dissolution.
Tell us your situation and the property and within 24h we'll tell you how to approach it, the taxes and what we do with the mortgage. Free and with no obligation.