The Inheritance and Donation Tax in Catalonia, Spain

On January 30, 2014, the Official Gazette of the Generalitat de Cataluña (DOGC), published Law 2/2014 on tax measures that modify several articles of Law 19/2010 of June 7 on the regulation of the inheritance and donation tax in Catalonia.  These modifications apply to the taxable transactions generated from February 1, 2014.

This Law shows numerous modifications of the quantitative elements of the tax, among which exists the modification of the percentage increases applicable to the quota.  The bonus of 99% remains the same for spouses.  However, for the rest of the relatives of group I (descendants under 21) and II (ascendants and descendants), there exist different percentages depending on the taxable base:  for the latter, the bonus of 99% remains the same for the inheritances of lower value (up to 100,000 Euros of taxable base), and an escalation for the bonus is introduced.  Therefore, when the taxable base is of a lower value, the bonus is higher.  In this way, the Resolution 323/X of the Catalan Parliament on the general political guideline of the Government, of September 27, 2013, becomes effective.  This Resolution urges the Government to reform the regulation of the tax to increase its progress and obtain a tax collection similar to the one that existed before the previous tax reform.

On the other hand, even though the bonus for the family business subsists, its application implies a substantial reduction of other bonuses provided in the tax.

This new scenario recommends reviewing the alternatives for the transmission of heritage, donation, or succession, and ensuring that the operations are more efficient taxation-wise.

For additional information regarding inheritances in Catalonia,

Please note that this article is not intended to provide legal advice.

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