How to calculate the inheritance and donation tax

As much as when a person dies, such as when we receive a donation that exceeds a certain amount, we will be forced to comply with our tax obligations, which in this case would correspond to the Treasury to be taxed by the inheritance and donation tax, which we will help calculate in .com

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What is and when do we have to pay the inheritance and donation tax?

The Inheritance and Donations Tax is a direct, personal and progressive tax according to the amount, which is responsible for taxing the patrimonial increases we receive in the following circumstances:

  • For that obtained through a legacy or inheritance of which we are beneficiaries
  • The amount obtained by life insurance, when the beneficiary is not the same as the insured
  • For the goods and rights obtained through donation, or without receiving anything in exchange for free

Calculation of the taxable base: taxable base of the tax, deductions and reductions

First, we must know the tax base, that is, what amount of everything received is susceptible to taxation. It is quite simple, since it is the complete totality of what is received, whether by insurance, by inheritance, or by donation.

Subsequently, we must know the deductions we can apply to said base, in order to reduce it. These will depend on the nature of the received patrimony:

  • We can only apply deductions in the case of having received an inheritance in which the deductions to be applied will be the debts that the deceased owns and that have been equally transmitted to the heir, and the expenses related to his death as funeral and burial.

Finally, we can apply some reductions depending on the degree of kinship we have with the person from whom we have received the estate. The Spanish State distributes this relationship according to four different degrees:

  • Grade I: Descendants and adopted children under 21 years, € 15, 956'87, and 3, 990'72 for each year that was needed to reach 21 years.
  • Grade II: Descendants and adopted over 21 years old, spouses and ascendants, € 15, 956.87
  • Grade III: Second and third degree collaterals, ascendants and descendants by affinity, € 7, 993'46
  • Grade IV: Collaterals of fourth degree or more, distant and strange, without reduction

Type of applicable tax and fee to enter

Once we know the previous data, we know how much we should apply the corresponding tax . This type of tax varies according to the autonomous community in which we are and the tax base that we have obtained, so to know what percentage we must apply, we must go to the Ministry of Economy and Finance of our province to inform us. Of course, these taxes in Spain are between 7.65% and 34%.

The documents and income tax must be made in the Ministry of Economy and Finance that corresponds to us, within a period of 6 months in the case of death, or 30 days if it is a donation.