In an unprecedented move, the newly formed coalition government of the Valencian Community has announced the elimination of Inheritance and Gift Tax for first-degree relatives. The measure aims to ease the financial burden on families, allowing them to inherit or receive donations without having to pay these taxes. Here you have the official information.
Previously, the Inheritance Tax had a general 50% rebate, but now a 99% rebate will be implemented for children, spouses, fathers and mothers. This means that transfers of property between these family members will be practically tax-free in the region.
The repeal of the tax will apply retroactively from the date of the regional elections. The decision responds to the growing trend of people opting out of inheritances due to the associated tax burden. It is anticipated that this measure will encourage more people to accept inheritances and gifts without financial worries.
Despite the budgetary implications, it has been stressed that the impact on public finances will be minimal. The revenue generated by these taxes represented only 1% of total public revenue in the region.
This resolution is part of a series of measures taken by the new government to simplify administration and prioritise social policies that directly benefit citizens. These actions are expected to have a positive effect on the economy and improve public services in the Valencian Community.
In summary, the elimination of Inheritance and Gift Tax for first-degree relatives is a significant decision aimed at easing the financial burden on families and encouraging the acceptance of inheritances and gifts in the region. The government is confident that this measure will contribute to the economic well-being of its citizens and stimulate growth in the Valencian Community.
Contact us if you need help with your inheritance or gift in Alicante, Torrevieja, Altea or any areas in the Valencian Community.