Doctrine by topic · DGT Observatory

Capital Increase: DGT doctrinal evolution

How the DGT's position on this topic has evolved, and the rulings it rests on.

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How the DGT's position has evolved

Settled doctrine High confidence 16 rulings · 2014–2025

Current position

For the taxable event of a donation to exist, the animus donandi must be present, i.e., the intention to make a gift. In the case of non-proportional dividend distributions, if there is no statutory provision and an excess is received with the intent to make a gift, this constitutes a capital increase subject to Inheritance and Gift Tax (ISD). In transfers between accounts, the managing office must determine the presence of this intent according to the circumstances.

The DGT's position remains constant in requiring the animus donandi to qualify an operation as a donation. Clarifications have been provided on specific cases, such as the forgiveness of debt between a company and a shareholder, which is qualified as income from movable capital, or the distribution of non-proportional dividends which, without statutory provision, are taxed as a gratuitous capital increase.

Turning points

  1. V0237-17

    Establishes the essential elements of a donation: impoverishment of the donor, enrichment of the donee, and the intent to make a gift.

  2. V1481-20

    Determines that the forgiveness of debt from a company to a shareholder is income from movable capital and not a donation due to the absence of animus donandi.

  3. V1525-25

    Specifies that the excess in a non-proportional dividend distribution without statutory provision constitutes a capital increase subject to Inheritance and Gift Tax (ISD).

Analysis based on 15 of 16 rulings with a stated position. Updated 26 September 2026.

Rulings on this topic

16
V1651-25 15 Sept 2025

Whether a transfer is deemed a donation depends on the donor's intent to give

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
animus donandihecho imponibleliberalidaddonatarioprincipio de calificación LISD — Ley 29/1987 de Sucesiones y Donaciones art. 1LISD — Ley 29/1987 de Sucesiones y Donaciones art. 3.1.b
Affects CompanyExpat · Non-residentIndividual
V2436-23 7 Sept 2023

Must self-declare inheritance and gifts tax on foreign donation

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
obligación personaldonación inter vivosdoble imposición internacionalautoliquidacióndonatario LISD — Ley 29/1987 de Sucesiones y Donaciones art. 1LISD — Ley 29/1987 de Sucesiones y Donaciones art. 3.b
Affects CompanyExpat · Non-residentIndividual
V1934-16 4 May 2016

Deduction of foreign tax on gifts subject to limits

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
doble imposición internacionalobligación personaltipo medio efectivodonacióndeducción LISD — Ley 29/1987 de Sucesiones y Donaciones art. 23.1LGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V0295-16 26 Jan 2016

Deduction for foreign tax on donation limited

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
doble imposición internacionaldeduccióndonaciónobligación personaltipo medio efectivo LISD — Ley 29/1987 de Sucesiones y Donaciones art. 23.1LGT — Ley 58/2003 General Tributaria art. 89.1
Affects CompanyExpat · Non-residentIndividual
V0717-14 14 Mar 2014

Legal entities are not subject to Inheritance and Gift Tax

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
sujeto pasivopersona jurídicaincremento patrimonialexenciónautoliquidación LISD — Ley 29/1987 de Sucesiones y Donaciones art. 1LISD — Ley 29/1987 de Sucesiones y Donaciones art. 3.2
Affects CompanyExpat · Non-residentIndividual

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