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V2946-14 3 November 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · revocación de donación

Revocation of a donation is not subject to Inheritance and Gift Tax if civilly valid

A taxpayer inquired whether the revocation of a previously made property donation is subject to Inheritance and Gift Tax. The DGT ruled that if the revocation is civilly possible and has retroactive effect, it does not constitute a new taxable event.

The question raised

Confirm that the revocation of the donation shall not be subject to Inheritance and Gift Tax.

The DGT's ruling

The revocation or reduction of a donation does not constitute a new legal transaction, but rather the annulment of one already performed, and therefore no tax is due. For this to occur, total annulment with ex tunc effects must be civilly possible. If legal revocation is not possible and a resolution by mutual agreement is chosen, it shall be considered a new transfer subject to tax.

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