{"id":13493,"date":"2023-09-05T19:15:49","date_gmt":"2023-09-05T17:15:49","guid":{"rendered":"https:\/\/www.white-baos.com\/?p=13493"},"modified":"2023-09-05T19:15:52","modified_gmt":"2023-09-05T17:15:52","slug":"modification-to-the-inheritance-tax-valencian-region","status":"publish","type":"post","link":"https:\/\/www.white-baos.com\/en\/modification-to-the-inheritance-tax-valencian-region\/","title":{"rendered":"Modification to the Inheritance Tax in the Valencian Region. What can we expect? Inheritance. Gifts. Lower taxes. Reduction of taxes. Tax rebates.\u00a0 Legal advice."},"content":{"rendered":"\n

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On the 28th<\/sup> of May of 2023, municipal and autonomic elections were held in Spain, resulting in a new regional government in the Valencian Community. Among the first measures of the new president of the Generalitat Valenciana is a substantial modification to the Inheritance Tax and Gift Tax<\/a>. What can we expect from this upcoming change in the law? Do we know when will this reform come into force? We answer these and other questions in this week’s article. \u00a0<\/p>\n\n\n\n

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Inheritance Tax in the Valencian Community: How does it work?<\/u><\/strong><\/h2>\n\n\n\n

Although Inheritance and Gift Tax are a state taxes, each region of Spain is free to set the deductions, allowances, and tax rebates<\/a> that they deem appropriate. This is why, for instance, inheriting in Catalonia (where inheritance tax is quite high) is not the same as inheriting in Andalusia (where hardly any inheritance tax is paid).<\/p>\n\n\n\n

In the Valencian region<\/a>, for many years, almost no Inheritance and Gift Tax was paid. Until 2013, this tax had a 99% reduction. In other words, receiving an inheritance or making a gift hardly had any impact on the pockets of citizens (out of every 100\u20ac to be paid to the taxman, only 1\u20ac was paid). However, from 2013 onwards, the Valencian Region suppressed this reduction and became one of the most expensive regions in Spain to inherit or receive a gift. Until now.<\/p>\n\n\n\n

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What does the modification to the Inheritance Tax and Gift Tax consist of?<\/u><\/strong><\/h2>\n\n\n\n

The change of Law 13\/1997<\/a> that the new government intends to approve is very simple: to re-apply the rebate of 99% of the tax liability. Both in mortis causa acquisitions (inheritances) and inter vivos acquisitions (gifts\/donations). Although it is not official yet, this tax rebate is expected to apply only to close family members: parents, children, spouses (and in the case of gifts<\/a>, also grandparents and grandchildren).<\/p>\n\n\n\n

<\/p>\n\n\n\n

When will the modification to the Inheritance Tax and Gift Tax be finally approved?<\/u><\/strong><\/h2>\n\n\n\n

At the beginning of August, the draft bill was published<\/a> in the Official Gazette of the Generalitat Valenciana (DOGV). This marked the beginning of the public consultation period of 15 days during which any citizen could present allegations. The Valencia government is currently studying the allegations. The next step will be to present the law to the Consell of the Generalitat<\/em> which, subsequently, will send the law to the Valencian Parliament, where it will be definitively approved.<\/p>\n\n\n\n

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Conclusions.<\/u><\/strong><\/h2>\n\n\n\n

The modification to the Inheritance Tax promises to place the Valencian Community as one of the regions in Spain with the lowest tax burden in inheritances and gifts. As soon as the final modification is approved, we will inform our readers in detail. At White-Baos Lawyers we are experts in Inheritance Law, planning and advice on Inheritance and Gift Tax<\/a>. If you have any questions about this or other issues, please do not hesitate to contact us. We will offer you expert legal advice.<\/p>\n\n\n\n

The information provided in this article is not intended to be legal advice, it simply conveys information related to legal issues.<\/p>\n\n\n\n

Carlos Baos (Lawyer)<\/p>\n\n\n\n

White & Baos.<\/p>\n\n\n\n

Tel: +34 966 426 185<\/p>\n\n\n\n

E-mail: info@white-baos.com<\/p>\n\n\n\n

White & Baos 2023 – All Rights Reserved.<\/p>\n\n\n\n

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You may be interested in the following services and articles:<\/h1>\n\n\n\n

Inheriting from a Step-parent. How does it affect the Inheritance Tax?. Kinship by affinity. Inheritance Tax in Spain. Supreme Court. Inheritance lawyers in the Costa Blanca.<\/a><\/h2>\n\n\n\n

Processing an inheritance and probate when the heir is a minor or disable. Sale of inherited assets. Foreigners in Spain.<\/a><\/h2>\n\n\n\n

Inheritance Tax. Interests. Penalties. Payment of the tax after the deadline. Legal advice.<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"

Modification to the Inheritance Tax and Gift Tax. Valencian Region. Succession. Tax reduction. Expert Inheritance Lawyer. […]<\/p>\n

Read More…<\/a><\/p>\n","protected":false},"author":2,"featured_media":13489,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[434,411],"tags":[1545],"class_list":["post-13493","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inheritance-and-gift-tax-planning-death-duties-taxes-iht-i-h-t","category-wills-probate-inheritance-matters-inheritance-tax-iht","tag-modification-to-the-inheritance-tax"],"yoast_head":"\nModification to the Inheritance Tax. Valencian Region.<\/title>\n<meta name=\"description\" content=\"Modification to the Inheritance Tax and Gift Tax. Valencian Region. Succession. Tax reduction. 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