Aragón has its own inheritance tax regulations as a result of the Spanish state ceding the tax revenue of inheritance and gift tax to Comunidades Autónomas, along with some regulatory autonomy to adapt tax to the particular circumstances of the respective Comunidad Autónoma.

This means that most Comunidades Autónomas have ruled new (and huge) benefits compared with those established by the Spanish State.

While the tax scheme and regime is the same in all parts of Spain, Comunidades Autónomas took advantage of the given power to fix higher thresholds, or different rates or direct reductions on the amount to be paid ( and sometimes all of these) to benefit close relatives of the deceased or disabled people. Also to promote local business, farming or cultural assets.

Moreover Comunidades Autónomas change their regulations quite frequently so it is necessary to check the regulation in force at the time the tax is due (the day of death).

• The tax free threshold for acquisitions is 500.000 € (575.000 if a disabled beneficiary) for ascendants, descendants and spouse , and also grandchildren, even if that grandchild’s parents are still alive.
• Children of the deceased under 18 benefit from a reduction of 100% of the taxable amount with a limit of 3.000.000 €.
• There is also a deduction of 99% for descendants and adopted descendants under 21, which includes beneficiaries of insurance policies.
• If the surviving spouse lives with children of the deceased who are under 18, the reduction limit for the spouse increases by 150.000 € for each child.  If the beneficiary is also a disabled person with a grade between 33 % and 65% the limit can reach 175.000 €.

• Siblings benefit from a tax allowance of 15.000 €

• In the acquisition of the house that was the habitual residence of the deceased, there is a reduction of 100% of the value, with a limit for each beneficiary ( ascendants, descendants, or a spouse) of 200.000 €.  Ownership must be retained for five years.

• The acquisition of an individual enterprise, professional business or share in a company,  has a reduction of 99 % if the beneficiaries are descendants or a spouse, or by their default, ascendants or, related in the collateral line up to grade three (siblings, aunts, uncles, nephews, nieces) with the obligation to keep and run the activity within the family for a period of five years.

• Apart from the reductions for kinship above, the general reduction for the acquisition of an individual enterprise, professional business or share in a company, is 50% ( 70% in cases of «empresas de reducida dimensión»).

• There is a deduction of 50% of the value of the inherited assets which are going to be used by the beneficiary to create a new enterprise or professional business, either individually or by an incorporated company

An unmarried partnership is equal to that of married couples if the unmarried union is recorded as stated in the law of Derecho Civil de Aragón at least four years prior to the date of death.

The question now is who can take advantage of these benefits:

• If the deceased was a resident in Spain, the inheritance tax law of Aragón is applicable if the deceased lived there for most of the five years immediately prior to death.
  If the deceased had lived longer in another Comunidad Autónoma than that in which they had their last residence, within this last five year period, that Comunidad Autónoma’s rule will be applied.
• If the deceased was a non-resident in Spain, BUT the beneficiary is, the tax payer can choose to apply the rule of the Comunidad Autónoma where the most valuable assets are located and, if there are no assets in Spain, the Law of the Comunidad Autónoma where they live.
• In cases where both the beneficiary and the deceased were non-residents, the tax payer can choose the law of the Comunidad Autónoma where the most valuable assets are located.These options for non-residents, are the result of a long process that has evolved in Spanish Law since the European Court of Justice resolution of September 2014.
  

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