Doctrine by topic · DGT Observatory

Effective Average Tax Rate: 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 12 rulings · 2016–2026

Current position

In Personal Income Tax (IRPF), the deduction for international double taxation is calculated by applying the lesser of two amounts: the actual amount paid abroad for a tax of identical or analogous nature, or the result of applying the effective average tax rate to the portion of the taxable base taxed abroad. In inheritance and gift tax, the extinction of the usufruct requires taxation at the value of the usufruct determined at its creation, applying the average tax rate calculated at the acquisition of the bare ownership.

The DGT's position remains constant in both analyzed cases. Regarding worldwide income, Article 80 of the Law 35/2006 (LIRPF) is systematically applied to determine the double taxation deduction. Regarding inheritance and gift tax, it is ratified that the consolidation of ownership is a single settlement where the average rate of the original dismemberment of ownership is applied.

Analysis based on 11 of 12 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

12
V0808-26 13 Apr 2026

Medium tax rate to be applied when domain is consolidated

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
consolidación del dominiousufructo vitalicionuda propiedadtipo medio efectivo de gravamendesmembración del dominio LISD — Ley 29/1987 de Sucesiones y Donaciones art. 26.cRISD RD 1629/1991
Affects CompanyExpat · Non-residentIndividual
V0248-23 14 Feb 2023

Deductible Taiwan tax in Spanish IRPF under international double taxation rules

SG de Impuestos sobre la Renta de las Personas Físicas
doble imposición internacionalresidencia fiscalrenta mundialdeducción por doble imposicióntipo medio efectivo de gravamen LIRPF — Ley 35/2006 del IRPF art. 2LIRPF — Ley 35/2006 del IRPF art. 80
Affects CompanyExpat · Non-residentIndividual
V1358-19 10 Jun 2019

Cannot claim refund in Spain of Portuguese withholdings

SG de Impuestos sobre la Renta de las Personas Físicas
doble imposición internacionalretencionesrenta mundialdeducción por doble imposiciónconvenio de doble imposición LIRPF — Ley 35/2006 del IRPF art. 2LIRPF — Ley 35/2006 del IRPF art. 80
Affects CompanyExpat · Non-residentIndividual
V1626-18 11 Jun 2018

Deduction for international double taxation applicable on Guatemalan income

SG de Impuestos sobre la Renta de las Personas Físicas
renta mundialdoble imposición internacionaldeducción por doble imposicióntipo medio efectivo de gravamenresidencia fiscal LIRPF — Ley 35/2006 del IRPF art. 2LIRPF — Ley 35/2006 del IRPF art. 80
Affects CompanyExpat · Non-residentIndividual
V4035-16 22 Sept 2016

Deduction for foreign taxes on Gibraltar income possible

SG de Impuestos sobre la Renta de las Personas Físicas
renta mundialdoble imposición internacionaltipo medio efectivo de gravamenparaíso fiscaldeducción LIRPF — Ley 35/2006 del IRPF art. 2LIRPF — Ley 35/2006 del IRPF art. 5
Affects CompanyExpat · Non-residentIndividual

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