Doctrine by topic · DGT Observatory

Fideicommissary Substitution: 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 8 rulings · 2016–2023

Current position

If the fiduciary has the power of disposal, they are taxed on full ownership in the ISD (Inheritance and Gift Tax) and the IIVTNU (Inheritance and Gift Tax on Non-Movable Property). Upon the death of the fiduciary, the fideicommissaries are taxed on the current value and rates, with the fiduciary or their heirs having the right to a refund of the portion corresponding to the undisposed bare ownership. If there is no power of disposal, the fiduciary is taxed only on the usufruct.

The DGT's position remains constant regarding the treatment of the fiduciary's power of disposal. The rulings confirm that the capacity to dispose of assets determines whether taxation is based on full ownership or usufruct, and they regulate the right to a refund of the bare ownership following the transfer to the fideicommissaries.

Turning points

  1. V2387-17

    Specifies that the right to a refund of the bare ownership portion arises at the moment the assets are transferred to the fideicommissaries.

  2. V3261-19

    Establishes that the income from the bare ownership becomes undue at the moment of transfer to the fideicommissary and that said recovered amount forms part of the fiduciary's estate.

Analysis based on 8 of 8 rulings with a stated position. Updated 1 October 2026.

Rulings on this topic

8
V3261-19 27 Nov 2019

Heirs of a fiduciary may claim a refund of tax paid on full ownership

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
sustitución fideicomisariafiduciariofideicomisariopleno dominionuda propiedad LISD — Ley 29/1987 de Sucesiones y Donaciones art. 1LISD — Ley 29/1987 de Sucesiones y Donaciones art. 3.1.a
Affects CompanyExpat · Non-residentIndividual
V0396-16 1 Feb 2016

Trust over bare ownership of shares taxed at market value for Inheritance Tax

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
fideicomisonuda propiedadsustitución fideicomisariasujeto pasivobase imponible LISD — Ley 29/1987 de Sucesiones y Donaciones art. 3LISD — Ley 29/1987 de Sucesiones y Donaciones art. 5.a
Affects CompanyExpat · Non-residentIndividual

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