What do we know?

 

Currently there is only talk of the elimination of the inheritance and gift tax in the Valencian Community, however, it is not entirely true.

The Inheritance and Gift Tax is levied on acquisitions of goods or rights located in Spain, made by individuals, residents and non-residents in Spain, whose regulation is found in Law 29/1987, of December 18.

Therefore, it is a State ownership tax that specifically taxes:

    - The acquisitions of assets and rights by inheritance, legacy or any other succession title.


    - The acquisition of goods and rights by donation or any other legal business free of charge, inter vivos.


    -The perception of amounts by the beneficiaries of life insurance contracts, when the contracting party is a person other than the beneficiary, except in the cases expressly regulated in article 17.2, a) of Law 35/2006, on Personal Income Tax. Physical Persons.

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How is it implanted?

 

Despite being a state tax, it is ceded to the Autonomous Communities, and therefore, they have certain powers over it.

It cannot be eliminated by any Autonomous Community, but they can implement deductions and/or allowances, and it is precisely what the recent president of the Valencian Community has proposed, to allow 99% of the Inheritance and Gift Tax.

This means that the party liable for the payment of the tax: heir or donee, would not have to pay 100% of the result of the liquidation, but 1%.

In addition to this possible tax benefit, there are already others regarding this tax, such as reductions from €100,000 for kinship, 240,000 for disability, 95% for acquisition of the deceased's habitual residence, 99% for transfer of business or shares.