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V0256-24 29 February 2024 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · reducción

95% reduction in Inheritance and Gift Tax available for Historical Heritage assets subject to specific requirements

A taxpayer inquired whether a 95% reduction in Inheritance and Gift Tax (ISD) could be applied when inheriting a property located in a historic centre. The Directorate General for Taxes (DGT) ruled that this is possible provided the asset is part of the Historical or Cultural Heritage of the Canary Islands, the heir is a spouse, descendant, or adoptee, and the property is retained for at least ten years.

The question raised

1. Regarding Inheritance and Gift Tax, whether the 95 percent reduction of its value may be applied in accordance with Article 20 of Law 29/1987, of December 18, on Inheritance and Gift Tax.

The DGT's ruling

To apply the 95% reduction in the ISD (Art. 20.2 c LISD) on assets belonging to the Historical or Cultural Heritage of the Autonomous Community, the acquirer must be the spouse, descendant, or adoptee of the deceased. Furthermore, the acquisition must be maintained for ten years following the death. The taxpayer must prove that the property is classified and registered in accordance with the regulatory standards of the Autonomous Community.

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