Balearic Islands eliminates inheritance and gift tax between parents and children
- 21 July 2023
- Business Consultancy
On July 18, the Balearic Government announced the elimination of the inheritance and gift tax in this community, as well as the elimination of the transfer tax for children under 30 years of age, among other measures. This tax represents an obstacle in the transfer of family businesses and, for this reason, 25% of the businesses cannot continue in Spain, according to the Association Stop Sucesiones.
In this sense, Marga Prohens, president of the Government of the Balearic Islands, after studying different cases, has decided to apply two new measures capable of promoting local businesses without the need for this to involve a high cost. Furthermore, she states that this change will not imply a decrease in the funds destined to public services of the autonomous community. The following is a list of these approvals:
- The totality of the Inheritance and Gift Tax (ISD) is completely eliminated after having been hovering between 7 and 10% for years.
- The Transfer Tax (ITP) on the purchase of the first habitual residence for people under 30 years of age and disabled people, with an income limit of 52,800€ in individual declarations or 84,480€ in joint declarations (as long as the price of the property does not exceed 270,151€) has been eliminated.
- In the case of Inheritance and Donations, the reform contemplates that in inheritances between siblings or between uncles and nephews, the reduction will be 50% if there are no descendants and 25% in case there are descendants.
To manage any incidence or receive more information about these new measures, please contact our Legal Department:
cinc@cinc.es
933 030 060 (Barcelona)
972 940 940 (Girona)
972 505 100 (Figueres)
