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V2872-21 17 November 2021 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · adquisición mortis causa

Contributing inherited shares to a company does not breach the requirement to maintain the value of the acquisition

A query was raised regarding whether contributing shares received through inheritance to a holding company breaches the requirement to maintain the acquisition for ten years. The DGT clarifies that this requirement refers to maintaining the value of what was acquired, rather than the ownership of the original shares.

The question raised

They request to know whether, by contributing the shares received through acquisition 'mortis causa', they fail to comply with the 5-year maintenance requirement of the acquired shares in application of the provisions of article 21.3 of the Consolidated Text of the Legal Provisions of the Community of Madrid regarding taxes ceded by the State, approved by Legislative Decree 1/2010.

The DGT's ruling

The maintenance of the acquisition following a death refers to its value and not merely to the percentage shareholding. Acts of disposal or corporate operations that substantially diminish the value of the acquisition are prohibited. If operations such as asset contributions are carried out and ownership passes to the securities received in exchange, the reduction is not lost provided that the value of the acquisition is maintained.

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