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V1521-14 10 June 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
ISD · pacto sucesorio

Succession agreements for specific attribution are subject to Inheritance and Gift Tax

A query was raised regarding the taxation of a succession agreement for specific attribution under the Civil Code of Catalonia and its potential revocation. The DGT has determined that these agreements constitute succession titles subject to Inheritance and Gift Tax, rather than Gift Tax.

The question raised

Taxation of the formalization of the deed of particular attribution of certain real estate assets and financial products and their possible revocation.

The DGT's ruling

The succession pact of particular attribution is a succession title subject to Inheritance and Gift Tax due to mortis causa acquisitions. If the pact results in the transfer of assets during lifetime, the tax accrues at the moment the agreement is executed. The revocation of the pact does not constitute a new act subject to tax, but rather the annulment of a legal transaction already performed. The transfer of assets during lifetime generates capital gains or losses in the transferor's Personal Income Tax.

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