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V0204-23 8 February 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · hecho imponible

Compensation received by heirs is subject to Inheritance Tax

The heirs of a deceased individual received compensation for damages arising from the application of the IVMDH following a Supreme Court ruling. The Directorate General for Taxes (DGT) clarifies whether this amount must be taxed under Inheritance and Gift Tax.

The question raised

Taxation of the amount received by the consultant, her mother, and her sister.

The DGT's ruling

The acquisition of assets and rights through inheritance constitutes the taxable event for Inheritance and Gift Tax pursuant to Law 29/1987. As the effects of the inheritance are retroactive to the time of death, the amount received is obtained in the capacity of an heir. If the credit right was not included in the original tax return, or was included for a different amount, a supplementary tax return must be filed.

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