Doctrine by topic · DGT Observatory

Trust: 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 28 rulings · 2014–2026

Current position

Due to the lack of legal recognition of the trust in Spain, the principle of tax transparency is applied. Transfers of assets or income ordered by the trustee are considered to be carried out directly between the settlor and the beneficiary. These operations are classified as inter vivos donations or mortis causa transfers subject to Inheritance and Gift Tax (ISD). In the case of assets located abroad, the regulations of the Autonomous Community of the beneficiary's residence apply.

The DGT's position has remained constant over time by applying tax transparency due to the non-existence of the trust figure in the Spanish legal system. Since 2014, the Administration has maintained that the relationships are considered to be carried out directly between the settlor and the beneficiary. The most recent rulings simply specify the application of regional regulations in donations of assets located abroad.

Turning points

  1. V1226-14

    Establishes that the trust figure is not recognized in Spain and that relationships are considered to be carried out directly between settlors and beneficiaries.

Analysis based on 26 of 28 rulings with a stated position. Updated 24 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
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
V0695-17 16 Mar 2017

Trust ownership for IRPF tax purposes determined by legal title rules

SG de Impuestos sobre la Renta de las Personas Físicas
trusttitularidad jurídicarendimientos del capitalganancias patrimonialesresidencia fiscal LIRPF — Ley 35/2006 del IRPF art. 2LIRPF — Ley 35/2006 del IRPF art. 5
Affects CompanyExpat · Non-residentIndividual
V1226-14 7 May 2014

Donations made via a trust are deemed to be made directly by the settlor

SG de Impuestos Patrimoniales, Tasas y Precios Públicos
trusttransparencia fiscaldonaciónhecho imponiblesujeto pasivo LISD — Ley 29/1987 de Sucesiones y Donaciones art. 3.1.bLISD — Ley 29/1987 de Sucesiones y Donaciones art. 5.b
Affects CompanyExpat · Non-residentIndividual

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