Registry closure as an anti-avoidance mechanism in the taxation of real estatetra ffic

Abstract

This paper examines various issues related to the registration closure for non-payment of taxes provided for in Article 254 of the Mortgage Law and related provisions of tax legislation. This measure, whose origins can be traced back to much earlier regulations, serves the purpose of safeguarding the overriding public interest in ensuring the collection of public revenues by the Treasury: specifically, the effective collection of the Transfer Tax and Stamp Duty, the Inheritance and Gift Tax, and the Tax on the Increase in Value of Urban Land, the respective provisions of which are analyzed separately. The study is complemented by an extensive body of doctrinal criteria issued by the Directorate- General for Legal Certainty and Public Trust on the subject.