With the recent publication of Law No. 6/2023, Tax reform in Inheritance and Gift Tax (ISD), following significantly reduce the tax burden It is obtained from inter-living or postmortem transfers carried out on behalf of close relatives.
The reform focuses on: four tax incentives: one) bonus related to successions in favor of grandchildren and adopted children, spouses, descendants and adoptees; 2) one bonus 99% for donations in favor of the donor’s spouse, parents, adoptees, children or adoptees, as well as grandchildren and grandparents; 3) A 99% bonus was confirmed in your favor disabled people and 4) extending the reduction of kinship to the degree of use by eliminating some of its limits.
Although the approved tax reform is ambitious in terms of the Tax in question, it “small print of reform“).
Among these questions, the question arises whether the bonus can be extended to second-degree and subsequent relatives of the collateral by making consecutive donations, if the bonus is not limited. Following the final interpretation of the norm and taking into account that other Autonomous Communities have provided it, careful stance It would be to deny this possibility.
Likewise and taking into account Regulatory changes This tax has suffered a certain loss in the last ten years. uncertainty About how long these measures will last, given that the Central Government has recently talked about harmonization on national territory in relation to property taxes.
For his part, among this lower case Financial impacts of collateral resulting from execution donations on personal income taxIn Wealth Tax and Municipal Capital Gains.
Like this, revaluation of donated assets Regarding the donor’s purchase cost, it has almost the same tax implications as selling for him/her; the opposite situation makes it impossible to benefit from the loss for tax purposes (although our Supreme Court has recently ruled otherwise).
Additionally, when it comes to social inclusion grants, it is important to review the Family Business’s access to and use of tax incentives. Impact on personal income tax their donation.
All of the above highlights the need for some prior thought and study by families, family businesses and the Family Office about when and how the issue should be addressed. generational change in family assets Ensuring greater use of existing tax incentives.