Succession pacts inter vivos in Aragon will not be taxed as capital gains

The application of regional laws regarding successions presents specific scenarios for the taxation of Personal Income Tax (IRPF). Recently, the Dirección General de Tributos (DGT) has clarified the tax treatment of asset transfers carried out through succession pacts inter vivos, a figure regulated by the Aragonese Civil Law Code.

What the DGT has resolved

The advisory body has determined that the transfer of assets through succession pacts with immediate transfer is covered by article 33.3.b) of Law 35/2006 on IRPF. As a direct consequence of this regulatory classification, the operation does not generate a capital gain or loss for the persons transferring the assets.

This criterion establishes that the operation should not be treated as an ordinary sale or onerous transfer, but is instead integrated into the special regime for transfers due to death or analogous figures provided for in state regulations.

What it means for you

If you are a natural person performing this type of pact under Aragonese regional law, the transfer of your assets will not result in an immediate impact on your income tax return in terms of capital gains. This allows for wealth planning that differs from habitual asset transfers.

However, it is fundamental to take into account the position of the beneficiaries. If those receiving the assets decide to transfer them to third parties before five years have elapsed from the pact or from the death of the deceased, they will not be able to apply their own acquisition value. Instead, they will be subrogated into the position of the deceased, maintaining the original value and acquisition date for the calculation of their future capital gain or loss.

What should be done

Given the specificity of the regional regulations and their integration into the IRPF Law, it is necessary to analyze the structure of each succession pact. The correct application of the subrogation of values in the event of premature sales by beneficiaries requires rigorous monitoring of deadlines and the documentation proving the original acquisition date. It is recommended to assess each particular situation to ensure that the transfer complies with the requirements of the Aragonese Civil Law Code and state regulations.