Comunidad Valenciana abolishes Inheritance and Gift Tax for family members

In an unprecedented move, the new coalition government of the Valencian Community has declared the abolition of Inheritance and Gift Tax for first-degree relatives. This policy aims to reduce the financial burden on families by allowing them to receive inheritances and gifts without having to pay these taxes.

Until now, the Inheritance Tax had a 50% rebate in general, but from now on there will be a 99% rebate for children, spouses, fathers and mothers. This means that these wealth transfers will be virtually tax-free in the region.

Impact of the Inheritance and Gift Tax

The elimination of the tax will be retroactive from the date of the last regional elections. The decision has been taken in response to the growing trend of turning down inheritances because of the tax burden. It is hoped that this measure will encourage more people to accept inheritances and gifts without financial worries.

Despite possible budgetary implications, it has been indicated that the impact on public finances will be minimal. The revenue generated by these taxes accounted for only 1% of total revenue in the region.

This decision is part of a series of reforms by the new government aimed at simplifying the administration and prioritising social policies that directly benefit citizens. These measures are expected to have a positive effect on the economy and improve public services in the Valencian Community.

In conclusion, the elimination of Inheritance and Gift Tax for first-degree relatives is a key measure aimed at easing the financial burden on families and encouraging the acceptance of inheritances and gifts. The government is confident that this initiative will contribute to the economic well-being of citizens and the growth of the Valencian Community.