Inheritance Tax Drop Proposed by Regional Government

Inheritance tax in the Valencian Community

Mazon announces the inheritance tax proposal. Credit: Valencian Regional Government

THE president of the Valencian regional government, Carlos Mazon, announced on Friday, July 21, that an urgent processing of the bill that will allow an application of 99 per cent discount on inheritance and gift tax will be submitted to the government.

As he explained in his speech, the tax reduction will be backdated to May 28, 2023, and the maximum bonus will be applied in the event that the succession or donation is made for the benefit of sons and daughters, spouses, and fathers and mothers.

Mazon stressed that the objective of this measure is to reduce the tax burden to prevent an inheritance from becoming a “serious economic damage for many families, who have to face their tax payment, without the inheritance bringing any economic benefit or a real increase in their heritage”. He also stated that “Sometimes, this tax conditions or limits the behaviour of taxpayers in matters such as savings or investment”.

During his speech, Mazon explained that since 2017, and in order to maximise the collection of inheritance and gift tax, the existing bonus has been reduced.

Currently, 50 per cent is generally applied, a percentage that will reach 99 per cent with the approval of the new bill.

Mazon also said that “It is a tax that is levied on the transmission of assets and income that have already been taxed before according to their nature, for which reason we will never again pay twice for the effort and sacrifice of a lifetime”.

The president indicated that the abolition of the tax “will cause the reactivation of the economy and the placing on the market of assets, which, mainly, is usually real estate”, which, added to the reduction in political spending, will offset the effects on public income.

Mazon considers that this tax burdens “the fact of death”, for which reason “it does not seem fair or dignified”.

Thank you for taking the time to read this article. Do remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories and remember, you can also follow us on Facebook and Instagram.

Written by

Jo Pugh

Jo Pugh is a journalist based in the Costa Blanca North. Originally from London, she has been involved in journalism and photography for 20 years. She has lived in Spain for 12 years, and is a dedicated and passionate writer.