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V0723-23 24 March 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IS · pacto sucesorio

Succession agreements taxed as mortis causa transfers, with early accrual if assets are delivered during lifetime

A UK resident inquired whether a succession agreement regarding the usufruct of shares in a Spanish company should be taxed under inheritance or gift tax. The DGT ruled that, if it falls under the civil regulations of the Balearic Islands, it constitutes a mortis causa transfer with early accrual at the time the agreement is executed.

The question raised

Whether the aforementioned succession pact must be subject to the mortis causa transfer rules or to the inter vivos donation rules.

The DGT's ruling

Succession pacts are succession titles that are taxed based on the taxable event of mortis causa acquisitions. If the pact includes the delivery of assets as a present gift, the tax accrues on the day the agreement is entered into, which constitutes a taxable event distinct from the one occurring after death. If the operation does not fall within the succession pacts of Law 8/2022, it shall be taxed as an inter vivos donation.

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