Doctrine by topic · DGT Observatory

International Tax Transparency: 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 42 rulings · 2014–2026

Current position

Due to the tax transparency of the trust, the transfers of assets are considered to be carried out directly between the settlor and the beneficiary. In the event of the settlor's death, a mortis causa transfer occurs, subject to Inheritance and Gift Tax (ISD). If the beneficiary is a resident in Spain, they are taxed by personal obligation, allowing for the application of the regulations of their Autonomous Community of residence for real estate located abroad.

The DGT's position has evolved from the application of general tax transparency rules for non-resident entities toward a specialization in the figure of the trust and analogous figures such as the bank trust. The doctrine has consolidated the treatment of transfers as direct acts between the settlor and the beneficiary. Recently, the application of regional regulations has been specified regarding donations of real estate located outside of Spain to Spanish residents.

Turning points

  1. V0718-19

    Establishes that transfers from the grantor to the beneficiary are considered direct due to the lack of recognition of the trust in Spain.

  2. V2038-23

    Extends the tax transparency treatment to analogous figures such as the Peruvian bank trust.

  3. V1067-26

    Specifies that in donations of real estate outside of Spain to residents, the regulations of the beneficiary's Autonomous Community of residence apply.

Analysis based on 41 of 42 rulings with a stated position. Updated 27 September 2026.

Rulings on this topic

24
V2467-21 29 Sept 2021

Loan interests and dividends from companies exempt if income already imputed

SG de Impuestos sobre la Renta de las Personas Físicas
trustrendimientos de capital mobiliariobase imponible del ahorrotransparencia fiscal internacionaltitularidad jurídica LIRPF — Ley 35/2006 del IRPF art. 2LIRPF — Ley 35/2006 del IRPF art. 5
Affects CompanyExpat · Non-residentIndividual
V2216-21 2 Aug 2021

Death of a trust settlor triggers inheritance tax via direct transfer

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
trusttransparencia fiscaltransmisión mortis causasettlorbeneficiario LISD — Ley 29/1987 de Sucesiones y Donaciones art. 3.1.aLISD — Ley 29/1987 de Sucesiones y Donaciones art. 5
Affects CompanyExpat · Non-residentIndividual
V1825-20 8 Jun 2020

Dividends from a Mexican transparent company taxed as capital gains

SG de Impuestos sobre la Renta de las Personas Físicas
transparencia fiscal internacionalrendimientos de capital mobiliariodoble imposición internacionalsociedad en transparenciarentas imputadas LIRPF — Ley 35/2006 del IRPF art. 25.1.aLIRPF — Ley 35/2006 del IRPF art. 80
Affects CompanyExpat · Non-residentIndividual
V3394-19 11 Dec 2019

Tax treatment of transfers of assets and income from a trust in Spain

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
trustsettlortrusteetransparencia fiscaltitular real LISD — Ley 29/1987 de Sucesiones y Donaciones art. 3.1.aLISD — Ley 29/1987 de Sucesiones y Donaciones art. 3.1.b
Affects CompanyExpat · Non-residentIndividual
V1097-19 21 May 2019

Dividends from transparent or asset-holding companies are not subject to Personal Income Tax for shareholders

SG de Impuestos sobre la Renta de las Personas Físicas
transparencia fiscalsociedades patrimonialesdividendosretenciónparticipación en beneficios LIS — Ley 27/2014 del Impuesto sobre Sociedades art. disposición transitoria novena.1LIS — Ley 27/2014 del Impuesto sobre Sociedades art. disposición transitoria novena.2
Affects CompanyExpat · Non-residentIndividual

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