El Inheritance tax In Spain it is considered one of the most expensive, since it has rates that can rise to 81,6%. It is important to mention that the obligation to pay this tax originates after the person dies and leaves an inheritance, being the legatees or heirs who must pay it as a result of the acquisition of said assets, rights and obligations.
Similarly, people who benefit from a funeral insurance contract must levy this tax if the person who contracts the policy is someone other than the one who benefits from it.
In Spain its regulation depends on the autonomies, but there are various initiatives such as the White Paper for the Spanish tax system published in 2022 that make harmonization proposals to avoid fiscal dumping between the different Communities.
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What are the characteristics of the Inheritance Tax?
El Inheritance tax It is considered as a direct tax, since, when the succession arises, the heir receives an amount of money that is passed as the execution of an income according to the Tax Agency.
The one in charge of applying the reductions and bonuses will be the autonomous community where the succession is generated, which will be carried out taking into account the degree of kinship that exists between the deceased person and the heir, or according to the amount of the inheritance.
In addition, it is considered as a subjective and progressive tax, which means that the higher the amount of the inheritance, the higher the rate that will have to be paid.
It is subjective because the degree of kinship is taken into account, being the lower link, the greater the tax burden.
How is the Inheritance Tax calculated in Catalonia?
In order to determine the tax rate, the corresponding type of rate must be applied to the liquidable base, which has a minimum of 7,00% and a maximum of 32%, taking into account the amount inherited.
At the same time, the multiplier coefficient must be taken into account according to the degree of kinship, which ranges from 1,00% to 2,00%.
If you are in Catalonia, the Inheritance Tax will have a number of bonuses that are applied to the taxable amount, which correspond to the degree of kinship.
What are the Bonuses that apply in Catalonia?
In Catalonia there are various reductions that are used according to the degree of relationship between the heir and the deceased, among which are:
group I
Descendants such as children, grandchildren, great-grandchildren, among others who are under 21 years of age will have a reduction of 100.000 euros and 12.000 euros will be added for each year less than 21 that the heir has, without exceeding the amount of 196.000 euros.
group II
The following relatives and their reductions will be included in this group:
- The spouse or stable partner will be deducted 100.000 euros.
- Children aged 21 or over, 100.000 euros.
- Grandchildren, great-grandchildren and other descendants aged 21 or over, 50.000 euros.
- If they are members of a mutual aid cohabitation relationship, 50.000 euros, taking into account that they must have lived with the deceased for a minimum of 2 years, at the same time that it must be accredited by means of a public deed or certificate of notoriety.
- Parents, grandparents and other ascendants, 30.000 euros.
Group III
If they are collateral relatives of the second and third degree, regardless of whether they are ascendants or descendants by affinity, 8.000 euros will be deducted.
Group IV
Collateral fourth degree relatives such as cousins or more distant relatives and strangers are not reduced.
White Paper for the reform of the tax system
Last Thursday, March 3, 2022, the so-called "White Book" was delivered to the Minister of Finance and Public Function, Ms. María Jesús Montero. East White Paper for the reform of the tax system, contains 700 pages of recommendations on fiscal and tax matters, prepared by a Commission of experts of prestige, chaired by D. Jesús Ruiz-Huerta, belonging to the Public Administration, companies, offices, as well as the University in the Lefebvre Fiscal Congress.
This commission was established on April 12, 2021 and its members have been holding different negotiations for the last 10 months, to prepare recommendations that pursue a supposed modernization of the State tax and collection system.
