The 99% bonus on Inheritance and Gift Tax that Consell has just approved, inheritance procedures at notaries from the state increased significantlydue to increased mortality rates due to Pandemic already own demographic evolution The aging rate is increasing in the region.
Like this, In both 2021 and 2022, this figure was greatly exceeded. The formalization of inheritances, which was common in Alicante before the arrival of the coronavirus. In the first of these applications, reflecting the main impact of covid, 14,966 inheritances were awarded to the relevant beneficiaries; this was 15.8% more than in 2019. In 2022, 14,646 were inherited, although the figure is somewhat modest. procedures were still registered, remaining at 13.4% above pre-pandemic levelsAccording to statistics of the Notary College of Valencia.
As for this year, initial data points to a new recovery. For this reason, 3,960 inheritances were distributed between January and MarchIn Alicante, that is. It is 10% more than in the same period last year and up to 25% more than in the first quarter of 2019.
This trend has led to a significant increase in e.g. The volume of houses changing hands in this way. According to INE data, especially during the last year, Alicante residents inherited 10,292 houses; This figure is a thousand more than in 2019. Similarly, in the first half of 2023, a further 5,653 houses changed due to the death of the owner; this is 20% more than before the pandemic.
Behind these data is the man from Alicante, deputy dean of the Valencia Notary College. Delfin Martinez, see a increased tax compliance the number of heirs, because with the resources now at the disposal of administrations, they take less and less risks and do not formalize the inheritance within the established period in the hope of expiration, as was customary a few years ago. But above all, Martínez attributes it to this: purely demographic reasons. To the increase in deaths due to both coronavirus and population dynamics.
Regarding the Inheritance Tax bonus, the notary thinks that this will be positive, although it will have a limited impact, as the majority of heirs no longer pay anything towards this tax, thanks to the 100,000 euro exemption granted. Applies to transfers from parents to children.
Beneficiaries
In this context, the figures announced by the Ministry of Finance show the following: 77,507 residents of Alicante who had to submit their Inheritance Tax declaration -It should be taken into account that there is usually more than one heir for each formalized inheritance-, only 9,498 were required to make some paymentSo only 12%. Still, it’s a fact with bonus More than half of the latter out of 99% – specifically, 5.695 – they would avoid paying or they would pay a very small amount; Therefore, the department, headed by Ruth Merino, estimates the annual number of beneficiaries of this measure in the state at this figure. In other words, after the change, only 5% of the heirs will have to pay this tax.
What does the change consist of?
The draft approved by Consell envisages a 99% bonus on the fee that the heir must pay, applying a rate ranging from 7.65% to 7,993 Euros, depending on the tax base. 34% for amounts over 781,000 euros. This means you only pay 1% of the amount obtained from this calculation.
Who is affected by the discount in an inheritance case?
The bonus is valid for heirs belonging to Groups I and II, which also include children and adoptees, parents and spouses. In this sense, the rule already stipulated that the first 100,000 euros from parents to children would be exempt; so in practice the measure in this case will only amount to an improvement for those who inherit more than this amount.
Who benefits from the change in donations?
The donation bonus applies to the same groups: parents, children and spouses. The draft also includes other improvements. One of the most notable is that, as noted by the chairman of the Financial Commission of the College of Economists, from now on grandparents will be able to donate up to 100,000 euros to their grandchildren without having to pay anything for this tribute. of Alicante. , Antonio Pérez Rovira. Until now this possibility was only available when the father died.
In which autonomous community should you pay taxes?
According to Pérez Rovira, the legislation applicable to Inheritance Tax is the legislation regulating the autonomy in the place of residence of the deceased person who created the inheritance. For donations, the legislation of the community in which the person receiving the goods resides is valid, except in the case of a house where the local law applies.
What happens to the remaining taxes paid on donations or inheritances?
They stay the same. In the case of inheritance, municipal capital gains will need to be paid if the inheritance includes real estate. In donations, when the house is transferred, the donor must declare the increase in value that occurred during the period he owned the house as capital gain.
What happens to common-law couples who inherit?
According to Delfín Martínez, deputy dean of the Valencia Notary College, this bonus does not apply to de facto couples, who have the same treatment as a person without family ties in the case of inheritance.