Valencia Inheritance Tax. Reductions and Bonifications
Introduction
Valencia region, formed by Castellon, Alicante (Costa Blanca, Javea. Denia, Benidorm, etc), and Valencia provinces, also has a special consideration on Inheritance and Donation tax, with important reductions and tax bonification
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 Valencia region, the Inheritance and Donation Tax is regulated and adapted by the regional law LEY 13/1997, DE 23 DE DICIEMBRE, DE LA GENERALITAT VALENCIANA, POR LA QUE SE REGULA EL TRAMO AUTONÓMICO DEL IMPUESTO SOBRE LA RENTA DE LAS PERSONAS FÍSICAS Y RESTANTES TRIBUTOS CEDIDOS
In this section we will detail exclusively reductions, tax rate and bonus on the Inheriance and Donation Valencia 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.
Reductions on the tax base
Successions/Inheritance
By kinship
€156,000.- Acquisitions by descendants and adoptees under 21 years of age, €100,000 plus €8,000 for each year under 21 that the deceased has.
€100,000.-Acquisitions by descendants and adoptees aged 21 or over, spouses, ascendants and adoptive parents.
By disability
€120,000.- Purchases by people with physical or sensory disabilities, with a degree of disability equal to or greater than 33%.
€240,000.- Acquisitions by people with mental disabilities, with a degree of disability equal to or greater than 33%, and by people with physical or sensory disabilities, with a degree of disability equal to or greater than 65%.
By acquisition of the deceased’s main residence
95%.– Acquisitions of the deceased’s main residence, with a limit of €150,000, provided that the successors are the spouse, ascendants or descendants or collateral relative over 65 years of age who had lived with the deceased during the 2 years prior to the death, and that the acquisition is maintained for 5 years.
99%.- Of the value of the individual agricultural company in favor of the spouse, descendants, adoptees, ascendants, adopters and collateral relatives, up to the 3rd degree, provided that the requirements are met.
The reduction will be 90% if the deceased at the time of retirement was between 60 and 64 years old.
99%.- Of the value of a sole proprietorship or professional business in favor of the spouse, descendants, adoptees, ascendants, adopters and collateral relatives, up to the 3rd degree, provided that the requirements are met.
The reduction will be 90% if the deceased at the time of retirement was between 60 and 64 years old.
99%.– The value of shares in certain entities in favour of the spouse, descendants, adoptees, ascendants, adoptive parents, or collateral relatives, up to the 3rd degree, provided that the requirements are met.
The reduction will be 90% if the deceased at the time of retirement was between 60 and 64 years old.
For the transfer of assets of the historical and artistic heritage
**Provided that they are transferred for exhibition, under the conditions determined by law:
95%, 75% or 50% of the value of the asset, depending on the period of transfer of the asset.
On agricultural structures in the Valencian Community
99%.- Of the value of an agricultural holding or elements affected by it located in the Valencian Community or of usufruct rights over it by the spouse, descendants or adoptees, ascendants or adopters and collaterals, by consanguinity up to and including the 3rd degree, with the status of professional farmer, when certain circumstances occur.
99%.- Of the value of rural properties located in the Valencian Community or of usufruct rights over it, when said plots are transferred within a period of one year to those who have the status of professional farmer and are owners of an agricultural holding or members of an agricultural processing company, cooperative, civil society or group registered as IGC.
99%.- On the amount of the gift tax authorised in the processes of public and private parcel restructuring of the tax, provided that there is no more favourable bonus or exemption by sectoral legislation (Art. 75.2 Law 5/2019).
Donations
By kinship
€156,000. – Acquisitions by children or adopted children under 21 years of age: 100,000 euros, plus 8,000 euros for each year under 21 that the donee has.
€100,000. – Acquisitions by children or adoptees aged 21 or over, by the spouse, parents or adoptive parents.
€156,000. – Acquisitions by grandchildren: 100,000 euros, plus 8,000 euros for each year under 21 that the donee has.
€100,000. – Acquisitions by grandchildren aged 21 or over.
€100,000. – Acquisitions by grandparents.
For the application of the above reductions, it will be required that the acquisition is made in a public document, or that it is formalized in this way within the tax declaration period.
In addition, when the donated assets consist of cash or any of those referred to in Article 12 of Law 19/1991, of 6 June, on Wealth Tax, the origin of the assets that the donor transfers and the effective means by virtue of which the donation is delivered must be justified in the public document.
For disability
€240,000.- Acquisitions by people with physical or sensory disabilities, with a degree of disability equal to or greater than 65%, and with mental disability, with a degree of disability equal to or greater than 33%.
€120,000. – Acquisition by people with physical or sensory disabilities, with a degree of disability equal to or greater than 33%, who are the spouse, parents, adoptive parents, children or adoptees of the donor, grandchildren and grandparents.
99%.– The net value of an individual agricultural company in favour of the children or adoptees or, where there are no children or adoptees, of the parents or adopters of the donor, provided that certain requirements are met.
This same reduction will apply to grandchildren, with the same requirements, provided that their parent, who was the donor’s child, has died.
The reduction will be 90% if the deceased at the time of retirement was between 60 and 64 years old.
99%.- Of the net value of a sole proprietorship or a professional business in favour of the spouse, descendants or adoptees, or, when there are no descendants or adoptees, in favour of the spouse, parents or adoptive parents, provided that certain requirements are met.
The reduction will be 90% if the deceased at the time of retirement was between 60 and 64 years old.
99%.- Of the value of shares in entities in favour of the spouse, descendants or adoptees, or, when there are no descendants or adoptees, in favour of the spouse, parents or adoptive parents, provided that certain requirements are met.
The reduction will be 90% if the deceased at the time of retirement was between 60 and 64 years old.
Up to €1,000.- For transfers of monetary amounts intended for the development of a business or professional activity, with own funds, in the field of cinematography, performing arts, music, painting and other visual or audiovisual arts, publishing, research or in the social field.
95%.- On the amount donated, provided that certain requirements are met, in favour of women victims of gender violence in order to acquire a habitual residence located in the Valencian Community.
On agricultural structures in the Valencian Community
99%.– For transfers of inter vivos shares in an agricultural holding or rural properties located in the Valencian Community or of usufruct rights by the spouse, descendants or adoptees and collaterals, by consanguinity up to and including the 3rd degree and have the status of professional farmers and are owners of an agricultural holding or members of an agricultural processing company, cooperative, civil society or group registered as IGC, provided that certain conditions are met.
99% On the amount of gift tax authorised in public and private parcel restructuring processes, provided that there is no more favourable rebate or exemption by sectoral legislation.
Tax rate
|
Taxable base (up to €) |
Taxable fee (€) |
Rest of the taxable base (up to €) |
Applicable rate (%) |
|
0 |
0 |
7.993,46 |
7’65 |
|
7.993,46 |
611,50 |
7.668,91 |
8’50 |
|
15.662,38 |
1.263,36 |
7.831,19 |
9’35 |
|
23.493,56 |
1.995,58 |
7.831,19 |
10’20 |
|
31.324,75 |
2.794,36 |
7.831,19 |
11’05 |
|
39.155,94 |
3.659,70 |
7.831,19 |
11,90 |
|
46.987,13 |
4.591,61 |
7.831,19 |
12’75 |
|
54.818,31 |
5.590,09 |
7.831,19 |
13’60 |
|
62.649,50 |
6.655,13 |
7.831,19 |
14’45 |
|
70.480,69 |
7.786,74 |
7.831,19 |
15’30 |
|
78.311,88 |
8.984,91 |
39.095,84 |
16’15 |
|
117.407,71 |
15.298,89 |
39.095,84 |
18’70 |
|
156.503,55 |
22.609,81 |
78.191,67 |
21’25 |
|
234.695,23 |
39.225,54 |
156.263,15 |
25’50 |
|
390.958,37 |
79.072,64 |
390.958,37 |
29’75 |
|
781.916,75 |
195.382,76 |
From now on |
34’00 |
Quota calculation
The result of the application of the tax rate to the base of the tax reduced by the applicable deductions, must be calculated with the application of the following rates, depending of the personal relationship of the deceased with the inheritor/donee, and its pre-existant Wealth.
|
Pre-existing Wealth |
Groups of Article 20 (Law 29/1987, of 18 December, on Inheritance and Gift Tax) |
|||
|
IN EUROS |
I and II |
III |
IV |
|
|
From 0 to 390,657.88 |
1,0000 |
1,5882 |
2,0000 |
|
|
From 390,657.88 to 1,965,309.58 |
1,0500 |
1,6676 |
2,1000 |
|
|
From 1,965,309.58 to 3,936,629.28 |
1,1000 |
1,7471 |
2,2000 |
|
|
More than 3,936,629.28 |
1,2000 |
1,9059 |
2,4000 |
|
Bonifications on the tax rate for Inheritance and Donations/Gifts
99%.- Acquisitions mortis causa made by relatives of the deceased belonging to groups I and II (descendants and adoptees, spouses, ascendants and adoptive parents).
99%.– Inter vivos acquisitions made by the donor’s spouse, parents, adoptive parents, children or adoptees. The same discount will be applicable to grandchildren and grandparents.
99%.– Mortis causa and inter vivos acquisitions made by people with physical or sensory disabilities with a degree of disability equal to or greater than 65% by people with mental disabilities with a degree of disability equal to or greater than 33%.
