The amount of inheritance tax paid in Andalucía differs from other autonomous regions, such as Madrid, Catalonia, Valencia or the Balearics.
The Decree-Law 4/2016, of July 26th, on urgent measures relating to the Inheritance and Donation Tax in Andalusia brings important changes , for example from the 1st of January 2017 the new minimum exempt of succession tax in Andalusia increases from 175,000 € to 250,000 € per heir for inheritances received by direct relatives of two groups (group 1: descendants or adopted children of less than 21 years old : group II, descendant, adopted children older than 21 year of age, ascendants or adopters and between spouses).
For the taxable band between € 250,000 and € 350,000, an additional reduction of € 200,000 is created. The inheritances (per individual / beneficiary) included in that band will only be taxed on the excess over € 200,000. (In this way, a base of, for example for € 260,000 would be taxed for the amount exceeding € 200,000, i.e. € 60,000).
Other changes applying from August 2016 are the reductions on inheritance taxes related to the main residence of the deceased (house where the deceased was domiciled at least 3 years prior the death): for each one of the beneficiaries of the deceased groups I and II over sixty-five years who lived with the deceased two years prior to his death. (see table next).
|Actual net value of the property referred to the taxable base of each beneficiary||% of reduction|
|€ 0 to € 123.000||100%|
|From € 123.000,01 to € 152.000||99%|
|From € 152.000,01 to €182.000||98%|
|From € 182.000,01 to € 212.000||97%|
|From € 212.000,01 to € 242.000||96%|
|As from € 242.000||95%|
The new regulation reduces the period that the beneficiaries need to keep the property inherited from 10 years to 3 years, when they applied the reduction referred to the main residence.
There is also a new reduction of 99% allowance against the taxes per transmission of individual agricultural enterprise, even though such activity does not constitute the main source of income of the deceased, under some conditions, i.e. keeping the activity for 5 years after.
There are no changes in article 20.3 of the Inheritance Tax ( 29/1987, de 18 December) which states that if the same property is inherited twice, or more, within the period of ten years, the Inheritance Tax paid on the first transmission is fully deductible on the second and subsequent transmissions.