Pages Navigation Menu

Andalucía charges less than Madrid for inheritances below 250,000 € – the discrepancies.

PP and Ciudadanos are putting pressure on Susana Díaz to eliminate the tax on inheritances and gifts, given 93% of beneficiaries in Andalucía are exempt from paying tax on declared inheritances.

The tax on inheritances and gift was granted to the autonomous regions in 1997 and since then inequality has raged over the large amount differences between the regions.

93% of the inheritors who declared inheritance tax in 2016 in Andalucía were exempt from paying the Treasury, and only 2% of the direct families (from parents to children) had to pay something, according to regional data from the Tax Office.

Until last Sept 30, the Treasury registered 190,798 estate liquidations, but only 14,055 had an associated income. Of this group, only 5,653 residents of the region were direct inheritors (from parents to children).

‘The right wing has set up a campaign to defend the 5,000 families which are subjected to inheritance tax, because they are the wealthiest in the region, and they do by lying and misleading, living in the past’, warned Susana Díaz number two, Juan Cornejo.

One example:
‘A 40 year old man living in Andalucía who is single, without children and unemployed who inherits a property worth 200,000 € would pay 28,250 € in inheritance tax, however a man in the same conditions with the exception he lives in the Madrid Community will be owed only 282 € – 100 times less’

This paragraph appears on the PP Andalucía official page as part of a campaign ‘Don’t let them take your inheritance away’ as Andalucía is the most expensive in Spain for inheritance tax, and so some 40,000 residents of Andalucía and hundreds of companies have migrated to Madrid every year to evade the tax, while those who are the poorest have refuse their inheritance being unable to pay the tax.

In Andalucía, until last year, if an inheritance was under 175,000 € – the beneficiaries were except for payment. But for only 1 € more the Andaluz inheritance tax ranges between 7.5% and 34% of the net value of assets – hence the first example.

However, thanks to Ciudadanos at the start of this forced the PSOE to lift the tax free level to below 250,000 €.
New example:
A married couple with two children, with a patrimony of one million €, and with available assets (usually) if the father dies, his three inheritors (widow and offspring) are exempt from tax.

For higher amounts (between 250,000 and 350,000) PSOE and Ciudadanos agreed an additional reduction of 200,000 €, making the inheritances per person in this range the tax free level of below 200,000 €. So to say, if the inheritance is 270,000 € the taxable income would be over 70,000 €

Madrid is a fiscal paradise regarding inheritances:
On a sum of 50,000 € – tax is 30.78 €
A gift of 100,000 € – tax is 98.31 €

On larger inheritances for 300,000 € Madrid takes 513.87 € – Andalucía takes 12,415.86 € (11,901 € more) and over a million € the difference is abysmal, in Madrid the amount is 2,753.19 € compared to 275,335.09 € in Andalucía – source REAF

Inheritance tax due – single childless man who inherits 800,000 €
Andalucía – 164,049.35 €
Extremadura – 158,796.17 €
Aragón – 155,393.76 €
Asturias – 134,385.48 €
Castilla y León – 125,643.76 €
Murcia – 65,619.74 €
C. Valencia – 63,193.76 €
Castilla-La Mancha – 31,739.23 €
Galicia – 15,040 €
Cataluña – 9,796.89 €
Baleares – 5,950 €
La Rioja – 3,175.92 €
Madrid – 1,586.04 €
Cantabria – 1,486.68 €
Canaries – 134.23 €