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V3114-20 19 October 2020 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · donación

Non-residents in third countries may apply regional rules for movable assets

A son resident in the UK asks whether, after receiving a donation of money held in Andalusia, he must pay tax to the State Tax Agency or the Andalusian tax authority, and whether he can benefit from the regional tax bonus. The DGT rules that, as a non-resident in a third country, he must pay tax to the State Tax Agency, but may apply Andalusian rules if the money has been held there for most of the past five years.

The question raised

First question raised: Whether the settlement of the Inheritance and Gift Tax must be carried out and filed before the competent body of the State Tax Administration Agency or before the competent body of the Tax Agency of Andalusia, and the designation of the form to be used for the declaration and settlement of the Inheritance and Gift Tax.

The DGT's ruling

For non-resident donees, the competent authority is the State Tax Administration Agency. However, according to the jurisprudence of the CJEU, the regulations of an Autonomous Community may be applied if the movable property (money) has 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. The DGT cannot rule on the application of specific tax reliefs under regional regulations.

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