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A taxpayer inquired whether a German inheritance contract ('Erbvertrag') for the transfer of property in Ibiza could be classified as a succession agreement with settlement of forced heirship shares under Balearic law. The Directorate General for Taxes (DGT) ruled that such an equivalence is not possible due to the prohibition of applying analogy in tax matters.
This ruling reinforces the principle of legal certainty in tax law, preventing taxpayers from applying foreign legal concepts to local tax frameworks through analogy to obtain more favourable treatment.
The tax team reviews your specific situation.
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