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V3062-19 30 October 2019 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · donatario

Non-residents may apply regional rules for movable asset donations if location criterion met

Two brothers resident abroad (UK and Sweden) inquire about jurisdiction and applicable rules for donating shares in Spain. The DGT clarifies that although the national administration is competent, regional rules may apply if the assets have been located there for most of the past five years.

The question raised

1.- Which is the competent tax administration for the settlement of the Inheritance and Gift Tax?

The DGT's ruling

The Administration competent for non-resident donees is the State Tax Administration Agency. However, donees may apply the regulations of an Autonomous Community if the assets (in this case, social shares) have been located therein for a greater number of days during the five years prior to the accrual. This right also extends to residents in third countries outside the EU or the EEA by virtue of the principle of free movement of capital. If the regional regulations provide for a reduction that exceeds the state reduction, the regional regulations shall apply instead of the state ones.

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