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V2059-15 2 July 2015 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IP · donación

Possession period determines application of regional rules

The DGT confirms that for a donation to a resident in Denmark, the five-year rule does not apply if the movable asset was owned for less than five years; instead, the period of ownership is calculated based on actual possession.

The question raised

Question posed Given that the donors would be tax residents of Madrid and the donee is a resident in a Member State of the European Union (Denmark) and given that the money to be donated comes from a real estate disposal of an asset located in Castilla La Mancha for just one year, it is consulted whether, to apply the regulations of the Autonomous Community of Madrid, it is necessary to wait until the money has been in Madrid for a greater number of days during the period of the five immediately preceding years or if, on the contrary, it can be considered that the movable property "money" is created at the moment of the sale of the real estate and therefore the passage of five years is not necessary and with less than five years of the location of said money in Madrid, the application of the Madrid regional regulations is valid.

The DGT's ruling

To determine the regional regulations applicable to donations of movable property to residents in the EU, the Autonomous Community where the asset has been located for a greater number of days in the five years prior to the accrual must be identified. If the donor has owned the asset for a period of less than five years, the calculation of days shall be carried out over the period in which the donor has owned the asset and not over the five years.

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