Gift tax Navarra

Navarra has its own legal system, which means it has its own tax raising powers.

Gifts are taxed in Navarra according to the closeness of relationship between the donor and the recipient.

For gifts made to descendants and adopted descendants when the same assets or rights have been gifted within the previous three years to the ascendant or adopted ascendant by another descendant or adopted descendant, the tax agency will assess the gift on the basis of the relationship between the first donor and the final recipient. Any tax already paid will be excluded.

Accumulation of donations

All gifts made within a period of three years from the same donor to the same recipient will be considered as one transmission for tax purposes, with the sum of all the gifts used to calculate tax owed.

The same accumulation will take effect during a period of three years for recipients of payments of life insurance policies when the donor, the insured party, is still alive.

No refunds will be given for previous tax payments.

Accumulation to inheritance

The previous accumulations of gifts and life insurance payments will be considered under inheritance tax for the recipient if a period of three years has not been exceeded. All transmissions will be considered as one transmission for tax purposes.

No refunds will be given for previous tax payments.

Gifts of joint assets made from a marriage contract

Gifts of assets or rights made jointly from both spouses will be considered as two donations for tax purposes.

The tax due on gifts will be calculated by applying the following tax rates to the taxable amount rated on the closeness of kinship:

Spouses and registered unmarried partners will be taxed on gifts and also benefits from life insurance policies at a rate of 0.8%.

Ascendants, descendants and adopted ascendants and descendants will be taxed on gifts and benefits from life insurance policies at a progressive rate, depending on the amount of the acquisition. This ranges from paying 2,000.00€ for an acquisition of 250,000.00€, to 54,000.00€ for an acquisition of 1,800,000.00€ for example.

For ascendants and descendants by marriage the rates are again on a progressive scale. An acquisition of up to 6,010.12€ will be taxed at 6%, from 6,010.13€ to 12,020.24€ at 7%, from 12,020.25€ to 30,050.61€ at 8%, with further tax bands culminating in a rate of 20% for amounts over 3,005,060.53€.

For siblings the progressive rate is 8% for an acquisition of up to 6,010.12€, 9% from 6,010.13€ to 12,020.24€, 10% from 12,020.25€ to 30,050.61€ etc, with the highest rate being 35% for amounts over 3,005,060.53€.

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