The Govern of Marga Prohens announces the measure approved in the extraordinary Consell de Govern convened today, Tuesday morning. The PP announced during the election campaign that it would be one of the first measures to be approved during the first 100 days of its term of office

The President of the Government, Margalida Prohens, today announced the approval of the Decree Law of fiscal reform for the suppression of Inheritance and Gift Tax (ISD) between parents and children, grandparents and grandchildren, and between spouses. As well as the reduction of up to 50% between siblings and between aunts and uncles and nephews, in the Balearic Islands. In addition, the reform also includes the elimination of the transfer tax (ITP) for the purchase of a primary residence for people under 30 years of age and people with disabilities, and a 50% reduction for people under 35 years of age, large families, single-parent families or families with disabled dependents.

prohens govern

The reform has been approved today in an extraordinary Consell de Govern. It will come into force as soon as it is published in the Official Bulletin of the Balearic Islands (BOIB) and must be validated within one month by the Parliament of the Balearic Islands.

It eliminates the payment of inheritance and gift tax between parents and children

The Decree eliminates the payment of inheritance and gift tax between parents and children, grandparents and grandchildren, and spouses. In the case of inheritances between siblings or between aunts and uncles and nephews in which the deceased person has no descendants, the reduction will be 50 %, and in the case of having descendants, the reduction will be 25 %. The reform applies both to inheritances by death and to inheritances under the so-called pactos sucesorios or inheritances during life under the civil law of the Balearic Islands.

The Decree-Law also includes the total elimination of the ITP on the purchase of the first habitual residence for people under 30 years of age and people with disabilities, with an income limit of 52,800 € in individual declarations or 84,480 € in joint declarations, and the price of the property may not exceed 270,151.20 €.

Finally, the ITP is reduced by 50% for the purchase of a first home for young people under 35 years of age and for the purchase of a primary residence for large families, single-parent families and families with disabled dependents, as long as the price of the property does not exceed €270,151.20. In the case of large families, the cost of the home may be limited to a maximum of €350,000.

The elimination of this tax and other measures related to the reduction of the tax burden are part of the government agreement signed by PP and Vox.