Skip to content
Back to index
V0418-20 21 February 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · donación

Non-residents can apply autonomous community rules where funds were held

A UK resident asks whether they can apply an autonomous community's regulations in Spain upon receiving a donation of funds held in Spain. The DGT responds that, under the principle of freedom of capital movement, non-residents in third countries also have the right to apply the autonomous community's rules where funds have been held for most of the past five years.

The question raised

Question raised: Taxation of the transaction.

The DGT's ruling

Non-residents, even if residing in third countries outside the EU or the EEA, are entitled to apply the regulations of the Autonomous Community where the movable property was located for a greater number of days in the five years prior to the accrual. This is due to the fact that the exclusion of third countries in the LISD is contrary to the principle of free movement of capital under Article 63 TFEU. Since the donee does not have residence in Spain, the competent administration for collection is the State Tax Administration Agency.

Free assessment and quote