Modification of the Tax on Succesiones and Donations in Andalucia

By means of the Spanish Law 1/2019, of 9 April, a series of amendments is made to the revised text of the provisions issued by the Andalusia region regarding assigned taxes.

In this post, we will focus on analyzing the modifications that affect the tax on inheritance and donations, which have led to the reduction of the tax, placing Andalusia among the region with lower taxation in Spain.

Thus, the approved bonus consists of reducing the tax in Andalusia by 99% for groups I and II, with the beneficiaries being spouses and direct relatives.


Modification of article 33.bis, where "mortis causa" acquisitions are reduced:

Specifically, in Probate a reduction of 99% of the tax rate is made when the acquisition is made by spouses and direct relatives (Group I and Group II). This 99% bonus on the tax rate would also apply in the cases of equalization established in article 20.1 of the Law, including those of the beneficiaries of life insurance policies.

Keep in mind that the reduction of € 1,000,000 is maintained on the tax base, so as not to harm acquisitions by inheritance up to the aforementioned figure, otherwise they would have to go from not paying tax to pay 1%. So if a person inherits assets with a net value of € 1,010,000, only tax for € 10,000, being able to apply the aforementioned bonus of 99%.

Modification of article 33.ter, where "inter vivos" acquisitions are reduced:

With regard to donations, the novelty introduced is to favour donations between direct relatives, that is, those belonging to Group I and Group II, thereby facilitating the transfer of assets and rights from parents to their children.

modificación del impuesto sobre sucesiones y donaciones en andalucíaThe reduction consists of a 99% reduction in the tax quota derived from "inter vivos" acquisitions.
As a prerequisite for the application of the bonus is that the donation or any other legal business for free and "inter vivos" must be formalized in a public document, ie must be signed before a notary public.
Another factor to take into account is that when the object of the donation or any other legal business for free and "inter vivos" is cash or any of the assets or deposits in current account or savings, that are not for the account of third parties, as well as treasury management accounts and financial or similar accounts, the bonus may only be applied when the origin of the funds is duly justified. As long as, it has been stated in the public document in which the transfer is formalized the origin of said funds

Request more information about the modification of inheritance and donation tax in Andalusia

Do not hesitate to contact our Law Firm in Marbella if you have any questions regarding an inheritance of non-residents Andalusia or a legacy of non-residents in Spain. Our team of lawyers who are experts in inheritance from non-residents in Marbella will be pleased to advise you and carry out all the procedures relevant to the inheritance.

Clarifying note:

Group I: Descendants and adopted children under twenty-one years belong to this group.

Group II: The descendants and adopted of twenty-one or more years, spouses, ascendants and adopters belong to this group.

SOURCE: Body COUNCIL OF FINANCE, INDUSTRY AND ENERGY. Published in BOJA núm. Ext 8 of April 11, 2019, Effective April 11, 2019