Inheritance or Donation in Spain?

With the new Regulation, it will once again become interesting to make donations on behalf of descendants. Below are the scales applicable in these cases. As the table shows, the maximum tax rate is 9% for the amounts received in excess of 600,000 Euros.

Taxable Income

Up to (Euros)

Gross Tax

(Euros)

Remaining Taxable Income

Up to (Euros)

Rate

(%)

0,00

0,00

200,000.00

5

200,000.00

10,000.00

600,000.00

7

600,000.00

38,000.00

Upwards

9

 

With this new Regulation, there may be situations in which the taxation of the acquisition by donation is less than the taxation of the acquisition by inheritance.

The maximum tax rate on acquisitions for inheritance is 32% for the portion of taxable income that exceeds 800,000 Euros. While the tax liability arising from the hereditary acquisition can benefit from the application of the bonus discussed earlier, taxation resulting from inheritance may be greater than the derivative of the donation.

This article is not considered as legal advice

Mariscal Abogados

Mariscal Abogados is an international and multidisciplinary law firm with proven experience in diverse areas of the Law. Our working languages are English, German, French and Spanish. For any further enquiries please Contact us