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V3194-18 14 December 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · adquisiciones mortis causa

Equality with descendants for Inheritance Tax depends on the completion of civil adoption

A query was raised regarding whether a person undergoing the adoption process can be taxed as a descendant over the age of 21 for Inheritance Tax purposes. The DGT indicates that until the adoption is legally finalised, the individual remains classified under kinship group III.

The question raised

Whether, for the purposes of settling Inheritance and Gift Tax, the applicant can be equated to a descendant or an adopted person over 21 years of age.

The DGT's ruling

The applicant will be part of kinship group III unless the adoption is considered civilly perfected. If the adoption is perfected, she will be part of group II. The DGT cannot determine whether the adoption has been perfected as it is a matter of civil rather than tax law.

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