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V0831-19 16 April 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · residencia habitual

Inheritance Tax is settled in the Autonomous Community where the deceased had their habitual residence

A query was raised regarding which Autonomous Community has jurisdiction over Inheritance Tax following the death of an individual who had resided in both Madrid and the Canary Islands. The DGT ruled that jurisdiction lies with the Community of Madrid, as it was where the deceased maintained their habitual residence during the last five years.

The question raised

Place of settlement for Inheritance and Gift Tax.

The DGT's ruling

Acquisitions mortis causa are taxed in the Autonomous Community where the deceased had their habitual residence at the date of death. Habitual residence is determined by the place where the person remained for the greatest number of days in the five-year period immediately preceding the accrual. In this case, as the deceased resided in Madrid for a longer period than in the Canary Islands during said period, the Community of Madrid is the competent authority.

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