The Directorate General of Taxes (DGT), in its binding ruling V0323-24 of March 5, 2024, has established that when a non-tax resident in Spain must pay the Inheritance Tax (IT) under real obligation—meaning only for assets and rights located in Spanish territory—they must also include investment portfolios in the name of the deceased containing shares of non-resident entities that are held in custody and deposit by a Spanish financial institution.
In the case addressed in the consultation, although the deceased person resided in Spain, the taxpayer, that is, the heir, was an Egyptian national, a tax resident in that country, who held two investment portfolios in shares of non-resident entities managed by a Spanish financial institution under custody and administration contracts for financial instruments.
Thus, in this scenario, the DGT considers that the fact that the financial investments are shares issued by non-resident entities is irrelevant for IT purposes, as their presence in Spain is sufficient to meet the real obligation requirement and decisive for their taxation under this tax.
Consequently, the real obligation to contribute encompasses not only securities and shares issued by entities or establishments located in Spain but also those issued by non-resident entities that are deposited in bank offices and other financial entities located in Spain, precisely because they are situated in Spanish territory.
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