The Valencian Council has recently published a draft bill amending articles 10.bis and 12.bis of Law 13/1997, of 23 December, which introduces the following tax benefits which apply from 28 May 2023:
1.- The following exemptions are introduced for inter vivos transfers (gifts):
– An exemption of €100,000 when the recipients are the spouse, children or adopted children over 21 years of age, grandchildren over 21 years of age. However, it should be noted that when the grandchildren, children or adopted children are under 21 years of age, this kinship exemption increases to €156,000.
– An exemption of €100,000 when the recipients are the grandparents. In these cases, the gift should be formalised in a document which has been drawn up by a notary and within the statutory declaration period of 1 month. When the gift consists of cash (money), this document must justify the origin of the gift and the effective means by which the delivery of the gift takes place.
– An exemption of €240,000 for inter vivos transfers by persons with a degree of physical or sensory disability equal to or greater than 65%, and by persons with a degree of mental disability equal to or greater than 33%.
However, when the transfer is made by persons with a physical or sensory disability with a degree of over 33%, who are spouses, parents, adoptive parents, children or adopted children of the donor, the kinship exemption will be €120,000. This will also apply to transfers made by grandparents and grandchildren with the same disability requirements. It should be noted that this exemption of €120,000 is compatible with those listed above.
2.- A rebate of 99% of the tax payable is introduced for:
– In mortis causa transfers (inheritance) provided that the recipients are descendants of the deceased.
– Inter vivos transfers (gifts) made by spouses, parents, adoptive parents, children or adopted children of the donor. This also applies to grandchildren and grandparents.
For application of this tax benefit, the gift must be formalised in a document which has been drawn up by a notary within the regulatory declaration period (one month for gifts and six months for inheritance).
In addition, it should be noted that when the donation consists of cash, the origin of the gift that the donor is transferring and the effective means by which the gift is delivered must be included in this document.
- This 99% rebate will also apply to both mortis causa and inter vivos transfers made by persons with a physical or sensory disability with a degree equal to or greater than 65% or by persons with a mental disability with a degree equal to or greater than 33%. It should be noted that, in these cases, as the recipient is a person with a disability, the Law does not require that there be a degree of kinship between the two.
For more information, please contact Delaguia&luzón Abogados y Asesores Tributarios SLP (admin@delaguialuzon.com; +34 96 3523 32 91).
