Spain
Approval of a new tax allowance and improvements to inheritance and gift tax
The Regional Government of Valencia has published Act 6/2023, of November 22, the aim of which is to ease the burden of inheritance and gift tax imposed on inheritances and gifts made between closely related relatives. This act approves the following measures:
- A new regional allowance set at 99% for acquisitions through gifts made by donors to their spouse, parents, adoptive parents, children, adopted children, grandchildren and grandparents.
- An increase in the percentage of the regional allowance from 50%-75% to 99%, applicable to tax rate for mortis causa transfers to descendants, adopted children, spouses, ascendants, and adoptive parents of the deceased.
It is worth highlighting that all of the measures approved under Act 6/2023, apply to transfers made either inter vivos (gifts) or mortis causa (inheritances) that are made (and accrue) from May 28, 2023.