Skip to content
Back to index
V2434-23 7 September 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
IS · pacto sucesorio

Taxation location of a succession pact depends on whether it is classified as a mortis causa transfer or a donation

A daughter residing in Madrid asks whether the transfer of funds through a succession pact (under Balearic law) is taxed as an inheritance or a donation. The DGT explains that if it is a succession pact, it is taxed as a mortis causa transfer in the Balearic Islands, but if it is a pure donation, it is taxed in Madrid.

The question raised

How and where the transaction must be taxed.

The DGT's ruling

If the transaction falls within the succession agreements of Law 8/2022, it is considered a mortis causa transfer and the accrual occurs upon the execution of the agreement, being taxed in the residence of the deceased (Balearic Islands). If it is not a succession agreement, it is an inter vivos donation and the accrual occurs upon the execution of the act, being taxed in the residence of the donee (Madrid). The classification of the transaction depends on whether it meets the requirements of the civil regulations of the Balearic Islands.

Book your free first meeting