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V2111-24 27 September 2024 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · revocación de donación

Revocation of a donation is not a new taxable event if civilly annulled

The taxpayer asks whether revoking a donation to avoid paying taxes on a subsequent donation is exempt from Gift and Inheritance Tax (ISD). The DGT rules that revocation does not constitute a new taxable event, provided that the donation can be civilly annulled with retroactive effect.

The question raised

Confirm that the revocation of the donation will not be subject to Inheritance and Gift Tax

The DGT's ruling

The revocation of a donation does not constitute a new legal transaction subject to Inheritance and Gift Tax, as its effectiveness simply ceases. However, this is only possible if civil laws allow for total annulment with retroactive effects (ex tunc). If legal revocation is not possible, the act shall be considered a mutual agreement termination, which implies a new transfer subject to tax.

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