Apply the change starting May 28
PP and Vox have given their definitive thumbs up to a proposal to reform inheritance law by abolishing both inheritance tax and gift tax, with opposition votes confirming the move. The eight partial amendments were brought to the plenary session by the PSPV and Compromís as part of the broader Accompaniment Act package. The intention is to implement these discounts retroactively from May 28, aligning with the commitments made during the electoral campaign.
Mari Carmen Contelles of the PP framed the moment as a decisive end to the death tax, contrasting two governing paths. She described a left-leaning approach that burdens Valencians versus a tax reform under Mazón designed to calm the region through policy adjustments. Contelles insisted that the 99 percent bonus would guarantee that no Valencian would be forced to relinquish an inheritance again, claiming the change would erase injustices and immorality affecting many middle-class families. She argued that the wealthy already have means to cover taxes, while the measure targets the middle and working classes as the main beneficiaries.
In the Valencia chamber, Vox supported the tax reductions, with its MPs arguing that the intrusive use of inheritance and gift taxes has ended, benefiting families within the saving and middle-class segments. The Vox representative Maria Teresa Ramírez stated that the money remains in the pockets of Valencians who earn it and contribute to the economy, emphasizing a tangible benefit for ordinary workers.
PSPV and Compromís, however, criticized the abolition for lowering taxes on the rich while increasing the burden on middle- and lower-income groups. Aitana Mas, deputy spokesperson for Compromís, argued that the reform would impact only a small fraction of the population while the vast majority would not benefit, and she criticized it as an early move by the new regional government. Mas contended that in a period of inflation and heightened needs for social policies, the immediate priority should be tax relief for lower and middle-income families rather than tax cuts for higher earners. The assertion was that the change would be financed at the expense of social services and broader societal protections, raising concerns about fairness and equity.
Arcadi Spain, deputy spokesperson for the PSPV, described the reform as a policy choice that would make the Valencian Community less just, tied to a view of justice that favors the minority. He warned that reducing taxes on high incomes today could translate into scaled-back public services tomorrow and argued that this move reflected minority-friendly governance rather than broad-based opportunity.
The opposition highlighted statistics from the debate showing that a large portion of inheritance or donation transactions reported no payments, while a small fraction of those who did pay more than 5,000 euros represented an even smaller share of the Valencian population. Critics suggested the data illustrated the regressive nature of the proposed reform and questioned its overall effectiveness in distributing tax burdens fairly. The discussion underscored a broader debate about how such changes would shape future fiscal policy in the region and its impact on families across income levels.
Move to retroactive effect and legislative steps
A finance commission leader explained that the issue has been moved to the Cortes plenary to review eight partial amendments and grant urgent approval for amending the law on inheritance. The reform would apply a 99 percent exemption for first-degree relatives including spouses, descendants, and ascendants, framing it as a first measure from the general assembly of the Consell de Carlos Mazón. The retroactive date has been set to May 28, the day the electoral victory was secured. While progressing more slowly than anticipated, the process seeks to close a legal gap and advance the policy with clarity and precision. Such a sequencing reflects the need to balance political promises with procedural realities and constitutional constraints, ensuring the measure has a solid legislative footing.
The debate and procedural moves signal a pivotal moment in the regional policy landscape, as lawmakers weigh how best to align fiscal reforms with social goals. The discussion focuses on the distributional effects of the abolition, the potential impact on public services, and the broader question of how to sustain social welfare programs while providing tax relief to families across the income spectrum. The overall strategy presented in this phase centers on delivering targeted relief to middle- and working-class households while addressing concerns about equity and long-term fiscal sustainability. The plan includes careful monitoring and subsequent adjustments if necessary to maintain a fair and effective tax system.