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V2321-19 9 September 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · repudiación de herencia

Pure, simple and gratuitous repudiation of an inheritance allows beneficiaries to be taxed directly

The inquirer asks about the tax consequences of repudiating or renouncing their mother's inheritance in favour of their sister. The DGT explains that the tax treatment varies depending on whether the renunciation is pure, simple and gratuitous, or whether it is made in favour of a specific person.

The question raised

Tax consequences of repudiation or renunciation.

The DGT's ruling

In the case of pure, simple, and gratuitous repudiation or renunciation, the beneficiaries are taxed on the acquisition of the renounced portion by applying the coefficient of their pre-existing assets. In this instance, the renunciant is not a taxable person as they are not deemed to have accepted the inheritance. If the renunciation is in favor of a specific person, the renunciant must be taxed on the hereditary acquisition and, additionally, tax is required for the transfer or donation to the beneficiary. If the renunciation is carried out after the tax statute of limitations has expired, it shall be treated as a donation.

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