02 Oct Deciding between Inheritance or Donation?
At López Morueco Lawyers we are going to give you the keys to find out which is more convenient, depending on the case.
The first thing to bear in mind is that inheriting and donating are not the same thing, and the cost may vary depending on where you are in Spain.
The taxes to be paid will depend on the Autonomous Community in which we are, as some regulations have transferred powers in this area, and apply very advantageous reductions and allowances, while other communities apply state legislation, making the process more expensive.
The residence of the donor and the beneficiary must be taken into account, as well as the location of the assets, generally real estate.
Generally and for practical purposes it is always cheaper to inherit than to donate, but the donation allows us more options when it comes to distributing the assets and a donation can be made applying conditions such as a certain task that if the conditions imposed are not fulfilled, the donation can be revoked.
The donation can also be revoked if the donor is physically or psychologically abused by the recipient.
WHAT IS THE TAX SYSTEM IN THE REGION OF VALENCIA?
Check GVA Website for further information: GVA.ES: Impuesto sobre Sucesiones y Donaciones (modalidad sucesiones).
In the Valencian Community there are the same reductions for kinship in donations as in inheritances, as long as they are made from parents to children or from children to parents, as well as the resulting tax being reduced by 75%, which is interesting, as you can distribute the assets freely, and without following the inheritance rules.
As each case is unique, it is always advisable to consult a lawyer in order to obtain the best advice.
At López Morueco Lawyers, we can advise you on any matter related to inheritance, donation, and taxes.
Do not hesitate to contact us. We are your lawyers in Torrevieja.
Contact – Lopez Morueco Abogados Torrevieja (abogados-solicitors-torrevieja.com)