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V0417-20 21 February 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IS · hecho imponible

Application of autonomous regulations in succession cases where the deceased resides in a third country

A Spanish resident asks how to settle an inheritance from a father residing in Mexico with assets in Madrid. The DGT responds that, under the principle of freedom of capital movement, the autonomous regulations of Madrid may apply even if the deceased is from a non-EU country.

The question raised

Method of settling the Inheritance Tax and applicable regulations.

The DGT's ruling

Residents in third countries (outside the EU/EEA) are entitled to apply the regulations of the Autonomous Community where the greatest value of the assets located in Spain is situated. This is because the exclusion of third countries in the LISD is contrary to the principle of free movement of capital of the TFEU. The taxpayer resident in Spain is taxed by personal obligation on all their acquired assets.

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