MASS reductions in inheritance and gift tax have been reported across Spain, with some regions axing it altogether – starting, in most cases, from January next year.
An increasing fiscal trend nationally, eliminating tax paid by those who inherit property or financial assets from their deceased loved ones will come as a source of relief to those faced with big bills on top of grappling with bereavement.
Inheritance tax will be axed for close relatives in some regions, and eliminated altogether in others (photo: Freepik)
Governments in the Balearic Islands, the Canary Islands, the eastern coastal region of the Comunidad Valenciana, and the land-locked northern wine region of La Rioja, have scrapped the tax altogether for some or most cases, whilst the inland north-eastern region of Aragón and the north-coast territory of Cantabria have reduced these duties.
Madrid, Andalucía, and Murcia had already done so in previous years.
Comunidad Valenciana president Carlos Mazón, taking up proposals already made by his predecessor Ximo Puig, has announced inheritance and gift tax will no longer be charged by the Treasury covering the region's three provinces of Valencia, Castellón and Alicante.
Balearic regional president Marga Prohens says no tax will be levied for inheritances or in vivo donations from parents to children, grandparents to grandchildren, or between spouses and legally-registered, unmarried cohabiting partners.
This comes at the same time as the Balearic regional government announces cuts to 'asset transmission' tax for young adult and disabled first-time homebuyers – a sum automatically payable to regional authorities when purchasing a property.
La Rioja president Gonzalo Capellán has scrapped inheritance and gift tax between parents and children and between spouses, as a first step in a full tax reform he intends to bring about before the May 2027 regional elections.
Huge discounts, up to 100%, on inheritance and gift tax, among other taxes – including on fuel in some cases – have been announced in the Canary Islands, whilst a reduction in inheritance and in income tax is said by Aragón president Jorge Azcón to be on the cards.
María José Sainz de Buruaga, leader of Cantabria regional government since May, has not given specific details of cuts, but has pledged 'the greatest fall in taxes in the region's history' for 2023 duties, which will mainly be paid or adjusted in 2024, and which will include rates payable for inheritances and live donations.
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