Bill proposes a state tax on large inheritances and gifts

Automatic summary, not yet reviewed

1. The bill would create a Tax on Large Inheritances and Donations, a state tax complementing the Inheritance and Gift Tax, taxing free transfers of wealth to individuals above one million euros.
2. The tax would apply across all of Spain, could not be transferred to the autonomous communities, and the state would handle its management and assessment.
3. Inheritances, legacies, gifts and life insurance payouts above 1,000,000 euros would be taxable. Gains obtained by legal entities would not fall under this tax but under corporate tax rules.
4. The taxable base would include reductions based on kinship, and a 95% reduction for businesses, professional practices or company shares kept for ten years, among other cases. The tax due would come from a progressive scale starting at 0% up to one million euros and reaching 34% above 1,797,555.08 euros.
5. Taxpayers could deduct the Inheritance and Gift Tax they actually paid for the same year from this new tax, to avoid paying twice on the same wealth.
6. The revenue would go to the Public Treasury and be used to fund policies supporting the most vulnerable. The law would take effect the day after its publication in the Official State Gazette.

Who it affects

• People who inherit or receive gifts worth more than one million euros net: They would pay this state tax, deducting what they already paid under the Inheritance and Gift Tax.
• Beneficiaries of life insurance policies above one million euros: The amounts received would be subject to the tax.
• Families passing on businesses, professional practices or primary homes: They could apply 95% reductions if they keep the assets for ten years, and use deferrals and installment payments.
• Autonomous communities: The tax would be a state tax that cannot be transferred to them, and regional rebates would not prevent payment of this tax.
• Financial institutions and insurance companies: They would be subsidiary liable parties in some cases and could not deliver assets or pay out policies without proof the tax was paid.

Words worth knowing

Causahabiente

Person who receives assets from someone who has died, by inheritance or legacy.

Hecho imponible

The event that triggers the tax, such as receiving an inheritance.

Base liquidable

The amount on which the tax is calculated, after reductions.

Devengo

The moment the tax becomes due, for example the date of death.

Obligación real

Duty to pay the tax on assets located in Spain when the person does not live there.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries