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V2529-17 5 October 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · sociedad de gananciales

Contributing an inherited property to community property results in loss of death tax relief

A taxpayer inquired whether contributing their share of a family home (acquired through inheritance) to the community property regime would result in the loss of Inheritance Tax relief. The DGT ruled that it would, as the property would no longer be owned solely by the heirs once it becomes jointly owned by the husband.

The question raised

Whether the contribution of the proportional share of said dwelling to the community property regime would entail the loss of the right to the reduction established in Article 20.2 of Law 29/1987, of December 18.

The DGT's ruling

The contribution of the proportional share of the dwelling to the community property regime entails the loss of the right to the reduction provided for in Article 20.2.c) of Law 29/1987. This is due to the failure to meet the requirement of permanence, as the dwelling would no longer remain under the ownership of the persons entitled to the inheritance once the husband also becomes an owner.

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