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V2854-18 31 October 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · donación

Regulations for gifting company shares depend on the donee's residence or the location of the assets

A taxpayer requested clarification on the applicable regulations and authority regarding the gift of a 39.01% stake in a company to two children, one residing in the Canary Islands and the other in Ireland. The Directorate General of Taxes (DGT) ruled that, as control of the company is not attained, the shares are classified as movable assets. Consequently, the regulations of either the donee's residence or the community where the assets were held for the longest period shall apply.

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