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V0743-25 24 April 2025 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · donación

Gift of lottery administration licence may qualify for 95% ISD reduction

The consultant enquires about the tax treatment of donating a lottery administration licence from their mother. The DGT states that the transaction is subject to Inheritance and Gifts Tax and may qualify for a 95% reduction in the taxable base if legal requirements are met.

The question raised

Taxation of the transaction.

The DGT's ruling

The gratuitous transfer of a lottery administration license is subject to Inheritance and Gift Tax. The 95% reduction provided in Article 20.6 of the LISD may be applied if the requirements regarding kinship, age or incapacity of the donor, the cessation of management functions, and the maintenance of value by the donee are met. Furthermore, it is necessary that the activity be exempt from Wealth Tax as it constitutes the taxpayer's primary source of income.

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