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V2187-24 14 October 2024 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · contrato de herencia

German inheritance contract cannot be equated to a Balearic succession agreement due to prohibition of analogy

A taxpayer inquired whether a German inheritance contract ('Erbvertrag') for the transfer of property in Ibiza could be classified as a succession agreement with settlement of forced heirship shares under Balearic law. The Directorate General for Taxes (DGT) ruled that such an equivalence is not possible due to the prohibition of applying analogy in tax matters.

The question raised

Classification of the operation in the Balearic Islands due to its possible equivalence to a succession pact with settlement of the forced heirship portion provided for in Law 8/2022, of November 11, on voluntary or contractual succession of the Balearic Islands, constituting a mortis causa succession for the purposes of Inheritance and Gift Tax.

The DGT's ruling

The classification of the German inheritance contract must be carried out in accordance with the personal law of the deceased (German regulations), for which it would be necessary to provide said regulation with a sworn translation. It is not possible to equate this contract with the succession pact of Law 8/2022 of the Balearic Islands, as Article 14 of the General Tax Law prohibits analogy to extend the scope of the taxable event.

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