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V2719-18 15 October 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · reducción estatal

State inheritance tax reductions may apply if regional regulations are unfavourable to certain relatives

A query was raised regarding whether it is possible to opt for the state regulation of Inheritance and Gift Tax when regional regulations improve certain aspects but are unfavourable in others. The Directorate General for Taxes (DGT) ruled that state reductions constitute a minimum threshold; therefore, if regional rules do not offer better terms than the state rules for a specific case, the state regulations must be applied.

The question raised

Possibility of opting for the State regulation of the Inheritance and Gift Tax in the event that regional regulations are more favorable in certain aspects and less favorable in others.

The DGT's ruling

State reductions constitute a minimum threshold that the Autonomous Communities cannot reduce, only expand. Only enhanced reductions substitute those provided by the State. In cases where regional regulations are unfavorable to certain beneficiaries (such as collateral relatives), these may apply the State reduction as it represents the minimum applicable. In such instances, the regional reduction would not apply if it is incompatible with the State reduction.

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