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V3041-14 5 November 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · leasehold

Foreign leasehold donations lack connection to any Autonomous Community

A resident in Spain donated leasehold rights for properties in London to her children, who also reside in Spain. The DGT ruled that, as the properties are located abroad, there is no connection to any Autonomous Community for Inheritance and Gift Tax purposes.

The question raised

Whether, for the purposes of Inheritance and Gift Tax, donations are understood to occur where the donees have their habitual residence. Treatment, for Personal Income Tax purposes, of capital gains or losses.

The DGT's ruling

The leasehold right is of the nature of a real right over the real estate. As the properties are located in London, there is no connection with an Autonomous Community under Law 22/2009. The donees, being residents in Spain, must submit the self-assessment to the Tax Agency in Madrid. For Personal Income Tax purposes, donations generate capital gains or losses, but losses derived from gratuitous transfers are not taken into account.

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