The Andalusian Government will reduce the Inheritance and Donations Tax.

The tax reduction has become effective by means of Decree-Law and It is estimated that it will affect nearly 10.000 taxpayers in this Autonomous Community.

 On 9th of April the Andalusian Government announced the tax to 99% on the Inheritance and Donations Tax.

The President, Juanma Moreno, announced this modification and he described the previous tax as“unfair and a development limiter”.

The reduction was effective by the most agile way, a Decree-Law, which is a tool reserved for situations of maximum need or urgency.

Also, it could have been approved by a “Special Law”, that it would have had to pass through the Andalusian Parliament,  or otherwise, by an additional arrangement in the Budget Law of the region, but this way would have delayed Its entry into force until June at least.

In this way, the tax will be reduced by 99% of the quota for purchases by made spouse and direct relatives.

Taking the example, the President suggested, now parents who want to donate 10.000 euros to their descendants only have to pay 1.82 euros in taxes instead of the previous 782 euros that they should have paid if the tax had not been reduced.

The reduce does not cover siblings, nephews, uncles or cousins, who will have to continue paying the same taxes till the date despite the large demands of the association “Stop Sucesiones”, which claims the application of the tax benefit to all the relatives.

 

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Tags: Tax, Inheritance, Andalusia, Decree-Law