The Balearic Islands annuls the Inheritance tax and reduces transmissions to buy apartments

The PP has hit the table after landing in the government of the Balearic Islands and has canceled the Inheritance and Gift Tax from parents to children, grandparents to grandchildren and between spouses. In addition, it has also reduced the property transfer tax on the purchase of first homes for young people and people with disabilities. This has been announced by the president of the Balearic Government, Marga Probens, who has considered that “it is urgent to lower the taxes to the families”. He has assured that this will become possible when the reform comes into force, which, according to Efe, will be this Tuesday when the Balearic Islands will position itself as the autonomous community with the lowest Inheritance and Donations tax in the entire country.

The leader of the PP has convened an extraordinary Government Council in which she plans to approve under the decree law the abolition of the “most unfair tax there is, which aggravates the work and effort of parents and grandparents”, a measure that will bring with it a tax savings of 60 million euros, as highlighted by the chief executive.

In inheritances by death and inheritances in life

The decree law, which will have to be ratified by Parliament within a month, represents the fulfillment of his promise that before the end of july it would have adopted the main initiative of a tax reform that will be broader and will continue in the coming months, he has emphasized.

In the case of inheritances between siblings or from uncles to nephews, the inheritance tax is reduced by half if the deceased they have no offspring and a 25% when they do leave descendants. These tax changes, Prohens has detailed, apply both to inheritances due to death and to succession agreements or “living inheritances”, which have their own regulation in Balearic civil law.

The same decree has included the elimination of the property transfer tax for the purchase of the first home by people under 30 years of age and people with disabilities, with a annual income limit of 52,800 euros in an individual declaration or 84,480 euros in a joint declaration, and provided that the sale price does not exceed 270,151 euros.

Reduction of the tax of purchase of houses in 15 million

This tax is cut in half for the purchase of a habitual residence by people between the ages of 31 and 35, large or single-parent families and families with disabled dependents, when the house does not cost more than 270,151 euros (350,000 euros in the case of large families), the Government has specified in a statement.

Prohens has estimated the expected reduction in tax collection due to this reform of the transfer tax at 15 million euros and has defended that the public coffers can face this reduction because the tax revenue They have been shot up by inflation.

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