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We blog legal and tax information targeted to resident and non resident UE citizens in Spain to help them with these issues and to solve doubt and generate controversy about these matters.

NEW SPANISH TAX LEGISLATION 2010 (III) INHERITANCE AND DONATION TAX AT MURCIA PROVINCE
Wednesday, February 3, 2010 @ 8:21 PM

 

1. Inheritance tax
 
In terms of inheritance tax and for financial years starting from 2010 is relaxed the rules for reduction in the tax base 99% of the value of a company or family business.
 
This reduction was not applicable when the trade, business or shares that were ceded to the heirs were correlated with a patrimonial society or a society of mere possession of goods. However, this constraint disappears and when the shares transferred are correlated to a patrimonial society or to a society of mere possession of goods, the tax base reduction of 99% of its value also applies.
 
Also was a requirement to apply this reduction that the deceased effectively exercised management functions within the institution and the remuneration he/she would received for would represent the greatest source of income. However, from 2010, this requirement is no longer required to implement the reduction in the tax base of 99%
 
2. Donation tax.
 
2.1 Reduction in the tax base 99% of the value of a company or family business.
 
In terms of donation tax and for financial years starting from 2010 is relaxed the rules for reduction in the tax base 99% of the value of a company or family business.
 
This reduction was not applicable when the trade, business or shares that were ceded to the heirs were correlated with a patrimonial society or a society of mere possession of goods. However, this constraint disappears and when the shares transferred are correlated to a patrimonial society or to a society of mere possession of goods, the tax base reduction of 99% of its value also applies.
 
2.2 Reduction in the tax base for the donation of a plot in the Murcia region for construction of habitual residence.

This is a new reduction of 99% of the value of land with a maximum reduction of up to € 50,000 in the tax base of donations when the object of the donation is a plot for the construction of the habitual residence of the beneficiary of the donation. The remainder in excess of € 50,000 will be taxed at a fixed rate of 7% instead of a progressive rate much more expensive, as it will be increasing according with the value of the plot, the higher this one, the higher the tax you have to pay.
 
The requirements of this new reduction are:

• The donation must be made between family members in groups I and II of relatives (father and sons, grandparents, grandchildren ...)
• Donation and its destiny is to be done in a public document.
• The construction of the dwelling must be completed within four years from the granting of the deed of donation.
• At the time of the deed of gift, the beneficiary of the donation must not be owner of any other house.
 
Serveco Asesores.
Antonio Robles Jara
www.serveco.es


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1 Comments


Louise said:
Thursday, February 4, 2010 @ 2:46 PM

I find these very informative, keep up the good work. Thank you.

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