The Canary Islands could lose €18 million in tax revenue due to the abolition of inheritance and gift taxes.
The benefit will apply to first- and second-line heirs (children, spouses, uncles, aunts, nephews and nieces). The government is forced to take such measures in connection with the region’s accession to the Valencian Community and the Balearic Islands. Financial advisor Mathilde Azian explained this decision by the fact that citizens of the islands already have a rather impressive tax burden in the form of having to pay income tax, capital gains tax and land tax.
Regional inheritance tax may also apply to non-residents who receive assets as an inheritance or gift in Spain. You can get a 99.9% discount only on the first €300 thousand. Anything above this threshold will be taxed at a progressive rate of up to 26%.