Changes in Inheritance and Gift Tax for 2017

THE VALENCIA Community – the provinces of Alicante, Valencia and Castellon – has approved modifications affecting the Inheritance and Gift Tax.

Almost every New Year, most regions – Spain’s autonomous communities, introduce some legal changes, affecting rules and laws. Valencia in 2017 is no exception.

And the Law 13/2016, of 29th of December, has changed the main Valencian Tax Law 13/1997, which regulates among others, the Inheritance and Gift Tax in this region.

At this point, we must remind our readers that for Inheritance and Gift purposes the law distinguishes between four groups depending on the relation with the deceased or donor. We want to mention group I; descendants under 21-years-old, and group II: descendants over 21-years-old, ascendants and spouses.

Until now, the Valencia Tax Laws, allows an allowance of 75% of the tax when the heirs belong to Group I and II. Under the changes, this ‘bonification’ remains for heirs who are part of Group I; but for the heirs from Group II, it has been reduced to 50%.

And regarding Gift Tax, the ‘bonification’ for Groups I and II does not apply any longer.

In any case, it must be remembered, there is still a reduction in the inheritance and gift tax of 100.000 Euros – so the heirs and beneficiaries part of Group I and II, will not pay tax on the first 100.000 Euros inherited or received. With the exception of spouses, who only qualify for this benefit if they inherit but not if they receive a gift.

Still, it must be said that the Valencian Tax Regulations regarding gifts and inheritance are more beneficial for tax payers in the region than in many other areas of Spain, and there are much more tax benefits than the national tax rules and laws.


Partnership: it is also included is a new article ( 12-quarter), where it is said formal partnerships (pareja de hecho) would be considered for tax purposes and benefits as spouses, as far as they fulfil with the Valencian Law; and they are formerly listed in the Partnership registry of the community of Valencia.

 Although this is a positive change for the unmarried couple, it could mean a discrimination for expatriates in Spain, as this Valencian Partnership Law and Registry may not apply to them – discrimination that should be fought against, in order that partnership formed by expats to be able to enjoy the same benefits.


 If you want to prepare your inheritance, make a gift, or deal with an inheritance and find the most efficient way to do it, contact us and we will help you.


The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.


Carlos Baos (Lawyer)

White & Baos

Tel:+34  966 426 185


White & Baos 2017 – All rights reserved