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V0160-22 3 February 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · repudiación de la herencia

Renouncing an inheritance in favour of specific persons is taxed as both succession and donation

A taxpayer renounces their share of an inheritance from 1985 in favour of their three children via a public deed. The DGT clarifies that, as this is not a pure and simple renunciation, the person renouncing must pay tax on the acquisition of the inheritance, while the beneficiaries must pay tax on the donation received.

The question raised

How the renunciation is taxed and when the accrual is understood to have occurred.

The DGT's ruling

When the renunciation is made in favor of specific persons, the tax is required from the renunciant for the mortis causa acquisition and, additionally, whatever must be settled for the assignment or donation to the beneficiaries. In the event that the inheritance tax is statute-barred, the renunciation is deemed for tax purposes to be a donation, which accrues at the moment the act is perfected. The determination of the exact moment of the perfection of the donation is a matter of fact that must be resolved by the managing Administration.

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