When several people share a home and one keeps it, dissolution of co-ownership allows this with more favourable taxation than a sale.
Taxation · Updated October 2026 · 6 min read
The dissolution of co-ownership is the route for one of several co-owners of a home to keep 100% of it by compensating the others.
Unlike a sale between co-owners, the dissolution of co-ownership is usually taxed under Stamp Duty (AJD) —a reduced rate— and not under Transfer Tax (ITP), which is much higher. The saving can be very significant.
It must be an award to a single co-owner with compensation (usually in cash) and, if there is a mortgage, coordinated with the bank. A poorly structured split may be taxed as a sale. We design it to minimise taxes.
When done correctly (one co-owner is awarded the asset compensating the other), it is taxed under Stamp Duty, a reduced rate, instead of the Transfer Tax of a sale. The saving is usually significant.
Yes, it is the usual route for one spouse to keep the shared home while compensating the other, with more favourable taxation than a sale.
Because it is not a transfer but an allocation: it is taxed under Stamp Duty, around 1.5 percent, instead of ITP of 10 to 11 percent, provided it is done correctly and with cash compensation.
Yes, but the bank must intervene to adjust the ownership of the loan. The operation should be coordinated with the bank to release the other co-owner where appropriate.
If there is no agreement, any co-owner can ask the court to divide the shared asset, which may end in auction. A negotiated dissolution is preferable.
We study the dissolution of co-ownership and its taxation so you save on taxes.
