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V3093-17 29 November 2017 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · reducción en la base imponible

95% reduction for donation of rural estates to a niece is not applicable

A query was raised regarding whether the reduction in the taxable base applies to the donation of rural estates used for agricultural activities to a niece. The Directorate General for Taxes (DGT) ruled that this reduction cannot be applied because the donee's relationship does not meet the legal requirements.

The question raised

Applicability of the reduction established in the Inheritance and Gift Tax Law, enhanced for the Autonomous Community of Andalusia by Legislative Decree 1/2009, of September 1.

The DGT's ruling

The 95% reduction in the acquisition value provided for in Article 20.6 of Law 29/1987 is only applicable to transfers in favor of a spouse, descendants, or adoptees. As the donee is a niece (second-degree collateral relationship), the legal requirements to access the benefit are not met.

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