The Incidence of Stamp Duty on Acquisitions by Adverse Possession

Abstract

This work aims to address fundamental concepts related to the institution of adverse possession, possession, and its relationship with the incidence of IOF (Tax on Financial Transactions), as well as to discuss pertinent issues that arise in doctrine and jurisprudence. As such, this study culminates in the presentation of a brief practical example that raises the issue of IOF exemption in acquisitions by adverse possession. In order to answer this question, a thorough analysis of the concept of adverse possession is first carried out, covering the necessary legal requirements, the assets susceptible to being acquired by adverse possession, the time periods required for the establishment of this right, and the legitimacy of the possessors. This is followed by an analysis of the IOF, beginning with a brief historical contextualization that frames the evolution of this tax, before moving on to its normative framework, specifically analyzing the application of the tax in situations of acquisition of assets by adverse possession.

Finally, various doctrinal aspects arising from the analysis of jurisprudence on the incidence of IOF in acquisitions by adverse possession will be explored.