Skip to content
Back to index
V0653-24 15 April 2024 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · pacto sucesorio de presente

Current succession agreements are ineligible for 'inter vivos' ISD tax reductions

A taxpayer received bare ownership of shares through a current succession agreement and sought to know if contributing these shares to a company within five years would breach the requirements for the Aragonese regional tax reduction. The DGT ruled that succession agreements constitute 'mortis causa' acquisitions and therefore cannot benefit from reductions applicable to 'inter vivos' transfers.

The question raised

It is consulted whether, once the consultant has received the bare ownership of the aforementioned social shares, the contribution of their right over them within a period of less than 5 years from the date of the deed by which they received said shares, to a newly incorporated company, would constitute a breach of the maintenance requirement provided for in the legislation approved by the Government of Aragon.

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 an indispensable requirement that the deceased has passed away. Therefore, in succession agreements of the present, neither said reduction nor the one provided in Article 20.6 of the LISD is applicable, as the latter is for 'inter vivos' acquisitions.

Book your free first meeting