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V0596-19 21 March 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · obligación real

Tax collection belongs to the State when the heir is a non-resident and assets are not entirely located in the Basque Country

An heir residing in Germany asks whether Inheritance and Gift Tax should be paid to the State or to the Provincial Council of Bizkaia, given that the deceased resided in Bizkaia and the assets are distributed between Bizkaia and Castilla-León. The DGT rules that competence lies with the Central State Administration.

The question raised

Whether the competence for the levy of the Tax corresponds to the State or to the Provincial Council of Vizcaya.

The DGT's ruling

As the heir is a non-resident and not all assets are located in the Basque Country, the levy belongs to the State. However, as a resident of a Member State of the European Union, the inquirer may opt to apply the regulations of the Autonomous Community where the deceased resided. Since there is no residence in a Spanish Autonomous Community, there is no connecting factor that transfers competence to an autonomous entity.

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