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V3100-23 28 November 2023 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · hecho imponible

Using inheritance funds to repay half of a joint mortgage is not considered a gift

A taxpayer inquired whether using inheritance funds to pay the remaining 50% of a joint mortgage held with his wife constitutes a gift. The Directorate General of Taxes (DGT) ruled that, under a regime of separation of assets and given that the account funds belonged to the wife, the husband's use of his own funds to settle his share of the debt does not constitute a gift.

The question raised

Whether it can be considered that the wife has taken charge of the first 50 percent of the mortgage and the consultant can cancel the remaining 50 percent with the money originating from the inheritance, without it being considered a donation subject to taxation.

The DGT's ruling

Under the regime of separation of assets, the ownership of funds in a joint account depends on the original source of the money and not on the bank co-ownership. If the funds originate from the wife's salary, they are her separate property. Therefore, the husband using money from his inheritance to pay his half of the mortgage debt does not constitute a donation.

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