A case was raised in which a German resident would receive by inheritance or gift from his father, also resident in Germany, the shares in a German company of the type “GmbH & Co. KG” in which the father is a shareholder.
The assets of this German entity include a real estate property located in Spain, the value of which does not represent more than 50% of the value of the entity’s assets.
The Administration understands that the taxpayer would not be acquiring, either in the inheritance or in the donation, assets or rights located, which can be exercised or must be fulfilled in Spanish territory, since the shares acquired are shares in a non-resident entity, without the fact that the entity is the owner of a property located in Spanish territory having any effect. Therefore, they would not be subject to Spanish Inheritance and Gift Tax.