Where inheriting a home is cheaper than donating the money while you’re alive

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Inheriting a home is more fiscally advantageous than donating money in most communities, as reported by Arag in a study on which tax formula is more economical to transmit assets from parents to children in life.

Arag tax lawyer María Esther González explained that each autonomy “has legislative capacity in this area and can regulate reductions and bonuses.” The analysis starts from two situations: transfer a property of 150,000 euros or transfer money for this value, comparing how much it costs to donate while living or to inherit. The option of inheriting is much cheaper in the aforementioned localities, because the taxation of inheriting 150,000 euros or a property for the same value is 0 euro.

In which provinces is it cheaper to inherit a home?

and the difference is insignificant in Andalusia, Aragon, the Canary Islands, Cantabria, Castilla y León, La Rioja, Madrid and Murcia, so donors should Analyze your personal income tax tax to see “if it is worth it for them to donate or wait until they die” to deliver the goods.

As to GaliciaGonzalez advise against donating a home, but has added that you can go to the figure of the Galician foral law ‘improvement agreement’, whose effect “would be identical to that of a donation and whose taxation would be that of inheritance: 0 euros”. the signature recommends transmitting the estate through inheritance in the following communities and provinces:

  • alava
  • Balearics
  • Castilla la Mancha
  • Catalonia
  • Ceuta
  • Melilla
  • Estremadura
  • guipuzcoa
  • Navarre
  • Valencia
  • Biscay
  • Asturias

Inheritances and donations in 2021

in 2021 Inheritance acceptances increased“setting a historical record” according to the latest data from the Notarial Statistical Information Center (CIEN): 365,649 acceptances were granted.s (22.2% more than in 2020) and 25% of inheritances were waived. That year also donations increased: there were 174,866, which represented an increase of 30.7% compared to 2020.

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