1Version 6 | May 2026

Absence of financial consideration between the owners regarding the partition: There must be no financial consideration from any owner to another in exchange for the partition process. This means that the partition is not considered a sale or a transfer of ownership between the owners, but rather a mere redistribution of real estate rights among the owners as stipulated in the deed. Example (4) Four (4) persons decided to subdivide a land they own in common in equal shares of (25%) for each partner under a single deed registered with the Notary Public, provided that it is subdivided into three (3) plots and into three (3) deeds. After reviewing with the competent authority and completing the statutory procedures, the land was subdivided into three (3) plots and three (3) deeds, with the continuation of common ownership for all partners at a rate of (25%) for each partner in each of the three (3) plots under three (3) deeds. Accordingly, the transaction is deemed outside the scope of tax imposition. Example (5) Four (4) brothers decided to partition a land they own in common in equal shares with a total area of (1,000 m 2) under a single deed registered with the Notary Public, where each of them owns (25%) pro-indiviso of the entire land. After reviewing with the competent authority and completing the statutory procedures, the land was partitioned into four (4) equal plots of (250 m 2) each, and an independent deed was issued for each brother regarding the plot assigned to him, provided that such partition does not include any compensation or financial consideration among the brothers, but is rather limited to the termination of the state of common ownership and the allocation of each share into a subdivided part of the real estate. Accordingly, the transaction is deemed outside the scope of tax imposition.