Castilla Leon Inheritance Tax. Reductions and Bonifications
Introduction
The Inheritance and Gift Tax is a state tax. It is regulated by Law 29/1987, of December 18, on the Tax on Inheritance and Gift Taxes and the Regulation that develops it is Royal Decree 1629/1991, of November 8. But, this national tax can be adapted and improved by regions. So, for Castilla León region, the Inheritance and Donation Tax is regulated and adapted by the regional law Ley 3/2021, de 3 de mayo, por la que se modifica el texto refundido de las disposiciones legales de la Comunidad de Castilla y León en materia de tributos propios y cedidos, aprobado por el Decreto Legislativo 1/2013, de 12 de septiembre.
In this section we will detail exclusively reductions, tax rate and bonus on the Inheriance and Donation Castilla León tax. For other aspects as Process of Inheritance, Executing a foreign Will etc, please, visit our Inheritance Process section, where all aspects and procedures may be reproduced in inheritance process independently of the specific executed region.
Successions
Reductions in the tax base
– Reduction for kinship
a) For descendants and adoptees under twenty-one years of age, the reduction is raised to €60,000 and €6,000 more for each year remaining before reaching 21 years of age.
b) In the case of descendants and adoptees aged twenty-one or over, spouses, ascendants and adoptive parents, the reduction is € 60,000.
Assimilation to spouses of members of registered de facto unions regardless of the EU or European Economic Area state in which they are registered or documented, with cohabitation for at least two years prior to the date of accrual of the tax, for the purposes of applying tax benefits.
– Disability abatements
Depending on the degree of disability, the inheritance tax reductions in Castilla y León are as follows:
a) In acquisitions by people with a degree of disability between 33% and 65%, the reduction rises to €125,000.
b) While for people who can prove a degree of disability equal to or greater than 65%, the reduction rises to €225,000.
It should be remembered that this reduction will be applied in addition to those that may correspond depending on the degree of kinship with the deceased. In addition, because it is an improvement on the state reduction, it is applied in place of it.
Other reductions:
– Reduction for disabled taxpayers
– Reduction for the acquisition of movable property that is part of the historical heritage
– Reduction for compensation paid by the Public Administrations to the heirs of those affected by the toxic syndrome and extraordinary public benefits for acts of terrorism
– Reduction for the acquisition of agricultural holdings located in Castilla y León
– Reduction for the acquisition of sole proprietorships, professional businesses and shares in unlisted entities domiciled in Castilla y León.
– Reduction for acquisitions when the person causing the event is a victim of terrorism or a victim of gender violence
– Reduction for taxpayers who are victims of terrorism.
Donations
Reductions
– Protected assets of taxpayers with disabilities,
– Acquisition of the first habitual residence
– Sole proprietorships or businesses
– Victims of terrorism
– Social shares
Bonifications of tax rate
– Bonus for kinship Groups I and II
99% discount on the tax liability for the spouse, descendant or adoptee, ascendant or adopter of the donor provided that the donation is formalised in a public document. If the donation consists of cash, deposit in a current or savings account, on demand or in time, the origin of the donated funds must be duly justified and the origin of said funds must be stated in the public document in which the donation is formalised.
