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V1067-26 7 May 2026 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · trust

Spanish resident's foreign property donation via Jersey trust taxed under regional law

A Spanish resident enquires about the taxation of a donation of a London property made through a Jersey trust. The DGT determines that, as the trust is not recognised in Spain, the donation is treated as a direct transfer from the settlor to the beneficiary.

The question raised

Question raised: Taxation of the donation for Inheritance and Gift Tax purposes. In particular, it is desired to know whether there is the possibility of applying the regulations of the Community of Madrid.

The DGT's ruling

Due to the tax transparency of the trust, the transfers of assets are considered to be carried out directly between the settlor and the beneficiary. As it is a donation of real estate located outside of Spain in favor of a person resident in Spain, the taxpayer is entitled to apply the regulations of their Autonomous Community of residence. The Administration competent for the collection is the state level, but the regional rules, reductions, and tax allowances apply if the taxpayer so chooses.

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