7,707 taxpayers have applied for the 100% tax rebate, and inheritance agreements or inheritance during lifetime accounted for 63% of cases

660 taxpayers have benefited from the elimination of the transfer tax for the first habitual residence, and 1,096 citizens have benefited from the 50% rebate.

Antoni Costa: ‘One year after initiating the tax reform that citizens voted for at the ballot box, the results are satisfactory’.

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More than 8,500 taxpayers have benefited from inheritance and gift tax rebates

After a year of starting the tax reform promoted by the Balearic Islands Government, more than 12,000 taxpayers – specifically, 12,236 – have benefited from the first two measures that were approved on 18 July 2023: the rebates on inheritance and gift tax (ISD), and transfer tax (ITP).

‘The results are satisfactory. We have increased the savings and disposable income of families in the Balearic Islands, we have facilitated access to a first home for those groups with the greatest difficulty in doing so, and we have made it possible to avoid having to pay a single euro for the family estate, the most unfair tax of all, said the Vice President and Minister of Economy, Finance and Innovation, Antoni Costa, at the press conference on Monday in which he presented the data.

Firstly, to date, 7,707 taxpayers have saved 100% of the inheritance tax, with a total of 116.04 million euros, and the average is 15,000 euros per taxpayer. These cases are those in groups I and II, i.e. between relatives in the ascending line, descendants and spouses. It should be noted that 63% of the cases have been inheritances in life or inheritance agreements.

Concerning the 50% allowances in group III – when the inheritance is between siblings, uncles, aunts nephews and nieces – the number of taxpayers benefited is 743, with a saving of 16.31 million euros and an average of 21,900 euros per taxpayer.

Within the area of donations, 9 taxpayers have benefited from the allowances that were carried out when they were donations to children or descendants of properties that constitute the first home. The total saving is 0.17 million euros. And, on the other hand, 113 people have benefited from the allowances when the donations have been of cash to acquire their first home, adding up to a total saving of 2.4 million euros. Thus, both inheritance and gift tax rebates have reached 8,572 people and have led to a saving of 134.92 million euros.

Transfer tax

Transfer tax was the second tax to be modified in the first phase of the tax reform. Since 18 July 2023, there have already been 660 young people under the age of 30 and people with disabilities who have benefited from the 100% tax rebate when it is their first main residence. The total saving is 14.01 million euros, with an average of 20,000 euros per taxpayer.

Secondly, 1,096 children under 36 years of age, large families, single-parent families, or families with disabled dependents have benefited from the 50% tax rebate, representing a saving of 10.61 million euros – an average of 9,600 euros per taxpayer. And finally, 1,908 citizens over the age of 36 have benefited from improvements to the 4% tax rate. These improvements have resulted in savings of €12.56 million, with an average of €6,500 per taxpayer. Therefore, the total figures for the transfer tax rebates are: 3,664 taxpayers benefited and a saving of 37.18 million euros. And, if added to those for inheritance and gift tax, the number of citizens benefiting amounts to 12,236.