2023-07-18 11:23:13
The president of the Balearic Government, the popular Marga Prohens, has announced several tax reductions after holding an extraordinary government council.
One of those contemplated in the decree is the abolition of Inheritance and Gift Tax between parents and children, grandchildren and grandparents and between spouses, both by cause of death and in inheritances during life through succession agreements.
Prohens had already promised this measure during his investiture debate as the new Balearic president, along with the end of the tourist moratorium, the rejection of the rental rate and the implementation of incentives to put empty homes on the market.
“In the case of inheritance between brothers or between uncles and nephews in which the deceased person has no descendants, the reduction will be 50%, and in the case of having descendants, the reduction will be 25%. The reform applies both in inheritances due to death as well as in inheritances by virtue of the so-called succession agreements or inheritances during life typical of the civil law of the Balearic Islands,” the Government statement stressed.
In addition, it has announced the Elimination of Property Transfer Tax (ITP)which is applied to the purchase and sale of used homes, for those young people up to 30 years old to buy their first home. They will also have a 100% bonus People with disabilitiesalthough with some requirements: as long as there is an income limit of 52,800 euros in an individual return or 84,480 euros in a joint return and that the price of the house does not exceed 270,151.20 euros.
will also apply a reduction of 50% of the ITP for young people between 30 and 35 years old, large families, single-parent families or families with people with disabilities in charge. As in the previous case, the price of the house cannot exceed 270,151.20 euros, although in the case of large families, the limit cost of the house has a limit of 350,000 euros.
As explained by the regional government, the reform has been approved today in an extraordinary government council, will enter into force from its publication in the Official Gazette of the Balearic Islands (BOIB) and must be validated within one month by the Parliament of the Balearic Islands.
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