Back to index
V0986-25 10 June 2025 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · trust

Trusts: settlor retains ownership, no taxation until death

A Spanish resident asks whether assets of a trust in which they are a beneficiary must be declared and how they would be taxed after the settlor's death. The DGT responds that, as trusts are not recognised, the settlor retains ownership and assets are only subject to inheritance tax upon death.

The question raised

Question raised 1. Whether, while the consultant's father is alive, the consultant must include in her Wealth Tax return, and where applicable in her Temporary Solidarity Tax on Large Fortunes return, assets or rights that form part of the assets of the trusts.

The DGT's ruling

Spain does not recognize the concept of a trust, therefore tax transparency applies and the relationships are considered direct between the settlor and the beneficiary. As long as the settlor is alive, they maintain ownership of the assets, so the beneficiary must not include them in their Wealth Tax or Inheritance and Gift Tax. Upon the death of the settlor, a mortis causa transfer occurs subject to Inheritance and Gift Tax by personal obligation.

Apply this to a real case

What is published here, applied to a company or a specific case. The first meeting is free.

Book a meeting Write to the firm
Email
Contact