Lorraine Williamson
A report by the international insurer ARAG identifies Catalonia as the most expensive region in Spain for receiving an inheritance. The study examined tax obligations for inheritances of €300,000, €500,000, and €1,000,000.
Under Spanish tax law, the Inheritance and Gift Tax is progressive (higher amounts incur higher rates), personal (paid by the recipient), and direct (charged to assets, not consumption). However, inheritance tax rates vary significantly by region, affecting the cost of receiving an inheritance.
Inheritance of €300,000
For an inheritance of €300,000, Catalonia has the highest tax rate at 0.70%, meaning recipients must pay over €2,000. Navarre follows with a 0.36% tax rate, equating to around €1,000.
Many regions, including Andalucia, Aragon, Asturias, the Balearic Islands, Cantabria, Castilla-La Mancha, Castilla y León, Extremadura, Galicia, Álava, Gipuzkoa, and Biscay, do not levy taxes on inheritances of this amount.
Inheritance of €500,000
For inheritances of €500,000, Castilla-La Mancha has the highest tax burden, requiring a payment of €14,500 at a 2.87% tax rate. Catalonia follows with a tax of over €12,400 and a rate of 2.46%.
Inheritance of €1,000,000
Asturias has the highest tax on a €1,000,000 inheritance, requiring over €140,000 at a 14.50% rate. Aragon follows at €110,000 (11.19%), with Catalonia third at €70,000 (7.28%).
Changes in legislation
ARAG notes that legislative changes have reduced inheritance tax in some regions. In 2019, Comunidad Valenciana, Castilla y León, the Balearic Islands, and La Rioja introduced a 99% reduction in inheritance tax. As a result, Comunidad Valenciana is no longer among the most expensive regions to inherit.
Extremadura has also revised its inheritance tax policies, increasing the exemption for relatives to €500,000 and introducing a new tax table to reduce the overall burden.
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