New reductions for IHT in Andalucía- July 2016

There has been recently passed a Decree which establishes new reductions on taxable amount for IHT in Andalucía:

- For members of the family inheriting habitual dwellings

-        100%  for properties up to  123.000,00 euros
-         99% for properties of value between 123.001,00 and 152.000,00 euros.
-         98% for properties of value between 152.001,00 and 182.000,00 euros.
-         97% for properties of value between 182.001 and 212.000,00 euros.
-         96% for properties of value between 212.001,00 and 242.000,00 euros
-         95% for properties of value from 242.000 euros.

Habitual dwelling ned to be the same for the heir for at least 3 years

There are also important reductions for rural industries


 

Hello Marie,

Thanks for sharing.

Do these IHT changes have any effect on the level of tax relief on inheritances of assets that don't fall into the "non-habitual dwelling" category (e.g. second homes, cars, money).

Also, do you know if these changes also apply to Gift taxes or is it only for IHT?

Theline:

Those changes have no effect if the house is not first residency of both deceasor and heirs.

Please find below complete chart of  taxable amounts reductions for Inheritances and Gifts:

1. ANDALUCÍA

Inheritances

Gifts

so it does not apply if the heir has not lived in the property for those three years before the death?

Extending explanation on home acquisition reduction

This reduction operates on  taxable amount corresponding to home property when this is acquired by spouse, descendant, ascendant and other relatives ( if the are above 65 years old)  which have lived with the deceased during the last two years previous to death .

Acquisition must remain for at least 3 years

Maria I understand the value for the property is determined by multiplying the valor cadastral by a factor.

If that is correct, what is the factor ?

Dear John:

In this document you can find factors updated July 2016 for Andalucia municipalities

http://www.juntadeandalucia.es/boja/2016/148/BOJA16-148-00025-13604-01_00096004.pdf