Gift Tax Murcia

Murcia has its own inheritance and gift 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 to those established by the Spanish State.

While the tax scheme and regime is the same in all parts of Spain, the 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. There are also benefits that help promote local business, farming, etc. as well as in the acquisition of the Comunidad Autónomas’ cultural assets.

However, the Comunidades Autónomas change their regulations quite frequently so it is necessary to check the regulation in force at the time the tax is due.

In Murcia there is a deduction on tax due on gifts to ascendants, descendants, spouses and registered unmarried partners, as well as siblings, nephews, nieces, of 99%, after applying any other deductions from the State or autonomous region, on condition that:

a) The gift must be formalized in a public deed, which, if not previously drawn up, must be done so within 30 working days.
b) For cash gifts the origin of the funds must be justified and stated in the public deed.
c) The destination of the gift must be mentioned in the public deed. Alterations to the deed to rectify omissions may only be made within the 30 working days.
d) If there is more than one gift from the same donor to the same beneficiary during a period of 3 years counting from the date of each gift, the reduction will be applied to succeeding gifts up to the applicable limit.

Reductions for gifts of an individual business, professional enterprise or shares in a company that belongs to the donor.

There is a reduction of 99% for gifts to any close relative up to and including cousins on condition that the donor is 65 or older, or is disabled. The following must apply:

a) In the case of shares in a company the donor must own at least 5% of the capital of the company or at least 20% together with family members up to and including the grade of cousins. The donor must retain less than 50% share in the capital after the donation, if they continue actively managing the company. (A seat on the board is not deemed to constitute a managerial role).
b) The recipient must retain ownership of the assets for a period of 5 years.
c) The company must be based physically and for tax purposes in Murcia.

Reductions for cash gifts for the acquisition or to start up an individual business, professional enterprise or for the acquisition of shares in “empresas de economía social” with domicile in the Autonomous Region of Murcia

There is a reduction of 99% for gifts up to a limit of 300,000€ or 450,000€ if the donor is a disabled person. The same limits apply for one or successive donations whether they are made from one or more donors. On condition that:

a) The beneficiary must not own assets over 500,000€.
b) The entity does not have has its principal activity the ownership of assets but has a real economic activity.
c) The turnover of the individual enterprise must not be more that 3 million euros for the last tax year or 1 million euros in the case of a professional business.
d) The gift must be spent within 6 months.
e) The company must be based physically and for tax purposes in Murcia.
f) Ownership must be retained for 3 years.

Reduction for cash gifts to adapt premises in relation to Covid measures

There is a reduction of 99% with a limit of 10,000€ for Covid measures. Premises must be adapted within 6 months of the date of the gift.

  • The question now is when can these benefits be taken advantage of?

    When the gift is of immovable assets located in Murcia or the gift is of other kinds of assets when the beneficiary is a resident in Murcia.

  • Any Questions?

    Contact us for specific personal advice for your individual case