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V0593-24 9 April 2024 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · pacto sucesorio de presente

No reduction for inter vivos acquisitions applies to pacts of present succession

A taxpayer inquired whether the Aragonese tax reduction for lifetime transfers could be applied to a pact of present succession. The DGT ruled that these pacts constitute mortis causa acquisitions and therefore do not qualify for the reduction applicable to inter vivos transfers.

The question raised

Competence to determine the right to apply the improvement reduction established by Article 132.3 of Legislative Decree 1/2005, of September 26, of the Government of Aragon, which approves the consolidated text of the provisions issued by the Autonomous Community of Aragon regarding ceded taxes.

The DGT's ruling

Succession agreements are succession titles and constitute mortis causa acquisitions. To apply the reduction provided in Article 20.2.c) of the LISD, it is a requirement that the deceased be a deceased person. As this requirement is not met in agreements made during the lifetime of the parties, neither said reduction nor the reduction for inter vivos acquisition under Article 20.6 of the LISD is applicable.

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