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V2965-20 1 October 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · donación

Non-residents in third countries may apply autonomous regulations on donations to Spain

A child resident in the U.S. asks whether they must pay tax on a donation from their parents made from Spain. The DGT states that even if the recipient is from a third country, the autonomous regulations of the community where the funds were primarily held may apply.

The question raised

Taxation of the transaction.

The DGT's ruling

Cash donations located in Spain by non-resident donees are subject to tax by virtue of real obligation. Although the law excludes residents of third countries, the jurisprudence of the CJEU and the Supreme Court allows for the application of the regime set forth in the Second Additional Provision of the LISD to these residents. Thus, they may apply the regulations of the Autonomous Community where the money has been located for the majority of the time during the last five years. As there is no residence in Spain, management corresponds to the Central Administration of the State.

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