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V2687-23 3 October 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · nuda propiedad

Taxation based on the higher of the outstanding tax from split ownership or the current gift

A taxpayer holding the bare ownership of a property inquired about how to tax the gift of a life usufruct by their mother. The DGT ruled that the taxpayer must compare the outstanding tax settlement resulting from the split ownership with the amount due for the current gift, and pay the higher of the two.

The question raised

Taxation of the donation of usufruct.

The DGT's ruling

Upon the consolidation of ownership due to a cause other than death or the prescribed term, the acquirer shall pay the higher of the settlements between the one pending for the dismemberment of ownership and that of the legal transaction extinguishing the usufruct. For donations, the current rate, the current value of the real estate, and the age of the donor shall be applied. The value of the real estate shall be the cadastral reference value, unless the declared value is higher.

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