Supreme Administrative Court: Disposal of a hereditary share. IRS.

The Supreme Administrative Court, by judgment dated 29/04/2025 (Case No. 01204/22.7BALSB), established case law to the effect that:

“The sale of an inherited share does not constitute an 'onerous alienation of real property rights', under the terms of Article 10, paragraph 1, paragraph a) of the IRS Code, and so any gains resulting from that sale are not subject to this tax.”

The decision eliminates capital gains taxation in relation to the transfer of hereditary position, stating that the transfer of the hereditary share is not equivalent to the direct transfer of real rights to immovable property, since, until the sharing, the heirs only hold an ideal share in the inheritance and not specific rights to individualized assets.

This understanding is contrary to the understanding of the Tax Administration and has significant implications for the classification and tax treatment of transactions involving the sale of hereditary shares.

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