Very Important News: With effect from the 1st January 2018, property owners in the Murcia region are in a much better position regarding inheritance and donation tax.
In 2015 the regional government ruled that there would be a discount of 50% to donations and inheritance tax for spouses, children and parents ( taxpayers in the group 2 category of taxpayers ).
Subsequently, in January 2017, they increased this to 60%. In the same law, a 99% discount was declared for beneficiaries who had large families (those with 5 or more children).
Last year the Regional Assembly of the Murcian region voted to agree a 99% discount on inheritance tax with effect from 1st January 2018 for spouses, children and parents. This is fantastic news and was agreed due to the alliance between the Popular and Citizens political parties (PSOE and Podemos voted against this).
This affects inheritances and donations of cash, of real estate, agricultural land and securities.
There is a minimum exemption of 16,000 euros in the case of inheritances. Thus a 16,000€ inheritance is free of charge of tax anyway for small inheritances in the Murcia region.
This means that similar to Andalucía and Valencia, it is now possible to inherit or receive a gift of property or money in the Murcia region now without paying barely any tax.
We have been advising clients with property in the Valencia region to make the most of a favourable tax regime in this region to donate property to children if they feel it appropriate (as clearly you cannot get much better than passing on assets with no tax or barely any tax). We are now able to extend this advice to all our clients with property in the Murcia region. it isn’t going to get much better than this in the future, especially if you are British as Brexit is likely to alter donation and gift tax charged for non-Europeans in Spain. We would really urge you to consider this.
If you wish us to quote for a donation to your children for your property in the Murcia region, we only need a copy of our deeds and your IBI bill to calculate the costs.
Please contact Amanda enquiries@spanishsolutions.net to discuss this.