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V1121-25 26 June 2025 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · personalidad jurídica

Assets of a foundation not included in Wealth Tax if not owned

The taxpayer asks whether assets of a German foundation, of which they are neither owner nor beneficiary, should be declared in their Wealth Tax return. The tax authority responds that, as the foundation has its own legal personality, its assets do not belong to the taxpayer and should not be included in their declaration.

The question raised

Question raised 1. Must the taxpayer include in their Wealth Tax or Temporary Solidarity Tax on Large Fortunes return the assets or rights owned by the foundation, considering that they hold no participation, legal ownership, or real rights over them?

The DGT's ruling

The assets and rights of a foundation with its own legal personality belong exclusively to the entity. The taxpayer must not include the assets of the foundation in their Wealth Tax (IP) and Temporary Solidarity Tax on Large Fortunes (ITSGF) returns if they do not hold rights of economic content over them. Even if they were a beneficiary or a member of the governing body, if they do not hold certain economic rights or powers of disposal, their rights would constitute a mere expectation without economic value and would not be subject to tax.

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