\ Approved the Decree-Law for the elimination of the tax between parents and children, grandparents and grandchildren and between spouses.
Eliminates inheritance and gift tax on inheritances between parents and children
\ The tax on the purchase of a primary residence for people under 30 years of age has also been eliminated.
The President of the Government of the Balearic Islands, Margalida Prohens, today announced the approval of the Decree-Law on tax reform for the elimination of inheritance and gift tax (ISD) between parents and children, grandparents and grandchildren and between spouses, as well as a reduction of up to 50% between siblings and between aunts and uncles and nieces and nephews, in the Balearic Islands. In addition, the reform also includes the abolition of the transfer tax (ITP) for the purchase of a primary residence for people under 30 and disabled people, and a 50% reduction for people under 35, large families, single-parent families or families with disabled dependents.
The reform was approved today in an extraordinary council of government, will come into force as soon as it is published in the Official Bulletin of the Balearic Islands (BOIB) and must be validated within a month by the Parliament of the Balearic Islands.
The Decree eliminates the payment of inheritance and gift tax between parents and children, grandparents and grandchildren, and spouses. In the case of inheritances between siblings or between aunts and uncles and nephews where the deceased person has no descendants, the reduction will be 50 %, and in the case of descendants, the reduction will be 25 %. The reform applies both to inheritances by death and to inheritances under the so-called pacts scenarios or inheritances during life under the civil law of the Balearic Islands.
The Decree-Law also includes the total elimination of the ITP on the purchase of the first habitual residence for people under 30 years of age and people with disabilities, with an income limit of 52,800 € in individual declarations or 84,480 € in joint declarations, and the price of the property may not exceed 270,151.20 €.
Finally, the ITP is reduced by 50% for the purchase of a first home for young people under 35 years of age and for the purchase of a primary residence for large families, single-parent families and families with disabled dependents, as long as the price of the property does not exceed €270,151.20. In the case of large families, the cost of the home may be limited to a maximum of €350,000.