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V2538-23 21 September 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · obligación real

Non-residents liable for Spanish tax on cash gifts if funds are located in Spain

A resident of Canada inquired whether they could apply Castilla y León tax reliefs to a cash gift made by their parents, who reside in Spain. The Directorate General for Taxes (DGT) ruled that the recipient is liable for tax under the 'real obligation' rule if the funds are located in Spain, and that Castilla y León regulations may apply provided certain requirements regarding the funds' residence in that autonomous community are met.

The question raised

Application of the regulations approved by the Community of Castilla y León. Specifically, the application of the 99 percent tax relief for descendants.

The DGT's ruling

The non-resident done shall be subject to the tax by virtue of real obligation if the donated money is located in Spain at the time of the donation. The regulations of the Autonomous Community of Castilla y León may be applied if the money has been located in said community for the majority of days in the five years preceding the accrual. The DGT is not competent to assess the application of regional tax reliefs, and management falls under the jurisdiction of the National Tax Management Office.

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