A community of Property is an agreement between 2 or more freelancers who decide to associate to carry out their professional activity.
The partners, commonly referred to as commoners, remain autonomous but have ownership of the “society” they share with the other partners.
It is a prevalent situation for small businesses that like simplicity and will not make considerable investments in the project.
The model for dissolving a community of property
The tax model to dissolve a community of goods is the 036 model.
You must present model 036 indicating the drop in the census of business people due to dissolution and liquidation.
The withdrawal date that you have to fill in is the one indicated in the dissolution contract, and once the withdrawal is processed, it will remain inactive.
Steps to dissolve a community property
Unfortunately, things don’t always go as expected, especially in the world of freelancers.
There are times when the numbers do not come out, and you have to stop the activity; when one works alone, there is no doubt, but when it is part of a community of goods, the dissolution brings some headaches.
Although it is not as complicated as closing an SME, it is essential to read this article carefully to know how to dissolve a community of property and not make mistakes. These are the steps you must follow:
1. Pay debts to dissolve community property
The first thing that has to be done when dissolving a community of property is to pay the debts with the public administration; they are the ones that can tickle us the most.
In a community of goods, there are taxes such as VAT that you must pay before leaving the ship.
The taxation of the communities of goods is very extensive since, afterwards, you have to attend to the payments to the suppliers because if you have any claim or embargo, you will have to face it with your assets.
There are usually many doubts regarding model 130 in a community of goods; you should be reassured because this only concerns you when becoming part of the community and not in its dissolution.
2. Distribute the assets among the partners to dissolve the community of assets
The next step is the distribution of assets among the community partners.
To do this, you have to make a private dissolution contract, very similar to the constitution, which includes the reasons for which the decision has been made and the distribution of your assets.
For everything to be completely legal, it must be submitted to the Companies Registry.
Now, as you probably know, the taxation of the community of assets has some other peculiarities, and one of them is that you have to pay a Tax on Patrimonial Transfers and Legal Acts (model 600) to dissolve the company, with an amount of 1 % of what was distributed to the community members.
3. Notify the Treasury of the dissolution of the community of property
Now you only need to notify the dissolution of the Treasury, presenting the 036 models and to Social Security with the TA 521 model and the dissolution agreement.
With this, the closure of the community of goods would have been formalized, and the self-employed could continue their lives, one on each side.
When notifying the dissolution of the community of goods to the Treasury, the causes of the dissolution must be put in writing.
The most common causes for the dissolution of a community of property are:
- Because none of the partners wants to continue, and that agreement is reached
- Because the association time that was set in the private constitution contract has ended
- We hope this will never happen due to one of the partner’s death or incapacity.
- Due to the resignation of one of the partners
- By court order