2023-10-07 04:15:00
The Asturian Government rules out lowering the Inheritance Tax for the heirs of the so-called groups 3 and 4 of the tax, that is: brothers, uncles, nephews, cousins, brothers-in-law, sons-in-law and daughters-in-law. In Asturias, the marginal tax rate can rise in these cases up to 87.6%, the highest in the entire European Union (until 2019 Murcia also had it, but it already discounts it at 99%). Four autonomous communities – Madrid, the Balearic Islands, the Canary Islands and Galicia – have recently introduced bonuses and discounts for these groups. Regarding spouses, children and grandchildren over 21 years of age, Asturias is one of the four regions that still apply the tax, along with Catalonia, Castilla-La Mancha and Navarra.
The Treasury Counselor of the Principality, Guillermo Peláez, admitted in a recent interview with LA NUEVA ESPAÑA that “society is moving towards a scenario in which more and more people will inherit from uncles or aunts, and it is true that there is a certain margin for tax relief.” However, sources from the Ministry have told this newspaper that, at the moment, there are no plans to introduce any changes.
The key is in the tax multiplier coefficients, which increase depending on the pre-existing assets and the degree of relationship of the heir. For example, in the case of a brother, uncle or nephew who has a previous asset of between 2 and 4 million euros, the inheritance tax carries a multiplier factor of 1.7. Thus, if the amount inherited exceeds 800,000 euros, the relevant marginal rate (36.5%) would have to be multiplied by 1.7, which would yield a tax rate of 62%. If the inheritance were for a cousin or more distant relative, the multiplication is 2.2, so the applicable rate would be 80.3%. And if a cousin’s previous wealth exceeded 4 million, the coefficient would be 2.4, imposing a tax of 87.6%, considered the highest in Europe.
A year ago, Madrid increased the bonus for inheritances between brothers, uncles and nephews to 25%. Last July, the Balearic Islands did the same up to 50%, as long as the deceased does not have children. In September, the Canary Islands reduced it almost entirely, to 99%. For its part, Galicia extended the 99% exemption for the acquisition of agricultural holdings to fourth-degree relatives (cousins or more distant).
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