A person considers making a “donation mortis causa” in favor of their spouse of a certain number of shares with transmission of ownership during their lifetime. Therefore, we are dealing with a case of donation of shares between spouses granted under the suspensive condition that the donee survives the donor. In Catalonia, in a “donation mortis causa” with transmission of ownership during life, the tax will accrue at the time the donation is granted and the tax rate and reductions established for free inter vivos transfers will apply. However and, following recent consultations from the General Directorate of Taxes of the State Agency of Tax Administration (AEAT), the criteria to be applied in the rest of Spain is different. These donations are considered a succession title and as such are taxed as “mortis causa” transfers. Another controversial issue is the matter of possible applicable reductions, as the AEAT considers that in the transfer of shares by “donation mortis causa”, the reduction for family business is not applicable since it is an indispensable condition for its application that the deceased (donor) has passed away.
At PLANA VENTURA GARCÉS we offer specialized advice in successions and donations, providing answers, among many others, to the issues and questions that may arise in any type of inheritance or donation.
