From January 1, Andalucía will cease to tax the heirs who receive property of a deceased family member when the sum of the assets does not exceed one million euros. Family members enjoying this benefit need to belong to groups I and II.
Group I: Children and adopted children under 21 years old.
Group II: Children and adopted children of 21 years old or older, grandchildren, parents, grandparents, spouses, unmarried partners registered as a Pareja de Hecho (only in certain regions)
It is necessary to take into account that the million euros computes by heir.
Does the heir´s previous patrimony compute?
Yes. In order to benefit from the exemption it is necessary that the heirs do not have a previous patrimony, at the moment of receiving the goods, of over one million euros. At present, the estate of the heir can not exceed 402,678.11 euros.
Who will continue to pay the tax?
The maximum tax bonus leaves out groups III and IV.
Group III: Other relatives of 2nd and 3rd grade, in-law relatives. Stepchildren, cousins, nieces and nephews, aunts and uncles, siblings, and in-laws and their ascendants/descendants.
Group IV: Other further grade relatives. No reduction is applied to these cases. All others including unmarried partners, unless registered as Pareja de Hecho in certain regions
The Junta de Andalucía establishes a reduction of 7,993.46 euros in general and another of 95% in the case of the habitual residence inherited between brothers over 65 years. No more.
How does reform affect donations?
In Andalusia the donations are more expensive than the inheritances, among other reasons because the autonomic norm contemplates less reductions in the quota of the inheritance tax and donations. The Government of Andalusia establishes a 99% exemption in the donations of money from the parents to their children or descendants that is destined entirely to the purchase of the first habitual residence, as long as the grantee is under 35 years old or has a handicap equal to or greater than 33%.
The rencet agreement by Citizens and PSOE introduces a change when the destiny of the donation is to create a company or to extend it. Again the barrier of the million euros is established. Donations between direct relatives (parents and children) up to this amount are not taxable provided that the full amount of the donations is intended to constitute or expand an individual company or family business. The small print contains a multitude of conditions: the donation must be formalized in a deed and the company must be maintained during the five years following the date of the public deed of donation, unless the grantee dies within that period.
What other groups improve their situation?
The disabled. Existing reductions are increased. For taxpayers with disabilities, the great news is that it corrects the jumping error that was when the goods exceeded 250,000 euros exempt in the case of brothers, uncles and nephews. With the current rule, when the inheritance you receive is 300,000 euros, you had to pay the tax in full amount. From 2018 disabled brothers and nephews will liquidate the tribute for everything that exceeds 250,000 euros. In the example above, would pay the tribute for 50,000 euros.
What about inheritances that have already been paid?
The measure is not retroactive and does not affect liquidations that are already being processed and are submitted before 1 January. It is one of the complaints of the Association “Stop Tax Successions” that has spearheaded the rebellion against the tribute and calls for its total elimination. This Andalusian platform has ensured that "they will not buy our silence with rebates and shod" and maintains the protest scheduled on October 7 in Seville.
Seville: on the left, the "Torre del Oro" and, on background, the Cathedral.