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V5011-26 4 June 2026 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · reducción por donación

Loss of donation reduction if entity ceases economic activity

Consultants ask whether donation of shares maintains the reduction in Inheritance and Gifts Tax. The DGT responds that if the entity transfers its business line and its assets become predominantly cash or financial, it no longer meets the exemption criteria for Wealth Tax and loses the reduction.

The question raised

Question posed First: Whether the conditions for access to the exemption provided for in article 4.Eight.Two of the LIP are met

The DGT's ruling

To maintain the reduction for the donation of shares, the shares must continue to be entitled to the exemption in Wealth Tax. If the entity ceases its economic activity, its assets will consist primarily of non-business assets or securities, thereby failing to meet the requirement of not having the management of movable or immovable property as its main activity. In this case, the exemption is lost and the unpaid tax amount must be paid along with late payment interest.

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What is published here, applied to a company or a specific case. The first meeting is free.

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