Dear Readers,
Unfortunately and in line with the last years, the taxes in the Valencian Community, that means the provinces of Alicante, Valencia and Castellon, have been raised again.
Thus, from this 6th August 6, 2013 came into force the Decree Law 4/2013, of the 2nd of August, which has modified several taxes transferred to the Valencia Community foreseen in the Law 13/1997.
Highlights of these changes:
TRANSFER TAX FOR REAL ESTATE AND PROPERTY.
From now in the Valencian Region, with the recent amendment of Article 13 of Law 13/1997, in a resale and sales between private property owners, we will pay Transfer Tax at the rate of 10% instead of 8%.
With this change, the transmissions between individuals equal to sales subject to VAT (i.e. purchase of new properties from developers…) because from the beginning of the year the VAT was increased also up to 10% .
INHERITANCE AND GIFT TAX (IHT).
These changes will not affect when the deceased or donor, or the beneficiary of the estate or grantee, are not tax resident in Spain, because if so, shall apply national Inheritance and Gift Tax Law (IHT) and not the Valencian IHT Law.
INHERITANCE: It has been lowered to 75% the tax bonus that before was at 99%, in the inheritance tax to be paid when the heirs are the testator’s children, parents or spouses, and as far as these heirs are habitually residents in the Valencian Region at the date of death.
DONATIONS: Also has been lowered down to 75%, the bonus which was of 99%, in Gift tax for donations in favor of the parents or children. Besides this bonus has now a limit of €150,000 instead of € 420,000.
Although, not all are bad news, there is a positive tax change because the general reduction in Inheritance tax and Gift Tax, goes from 40,000€ up to 100,000€.
The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.
White & Baos
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