Skip to content
Back to index
V2599-17 13 October 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · base imponible

Mortgages securing third-party debts cannot be deducted from estate assets

A query was raised regarding whether mortgages securing third-party debts on estate assets can be deducted for Inheritance Tax purposes. The DGT ruled that such a deduction is not possible because the deceased did not hold the debt personally.

The question raised

Consideration as a deductible debt in the settlement of Inheritance and Gift Tax by the heirs.

The DGT's ruling

Mortgages that do not involve a decrease in the value of the transferred asset are not deductible as charges on the assets. Only debts incurred by the deceased may be deducted, provided that the accreditation requirements are met. In this case, as they are guarantees for third-party debt, there is no debt of the deceased and their deduction is not applicable.

Book your free first meeting