Is it the same to receive an inheritance as to receive a donation in Spain?
What are the main differences?
What is best for me and my family?
In Spain, it is not the same as to receive an inheritance as to receive a donation and the cost varies depending on province or region where the donor and beneficiary live.
Each autonomous community has comprehensive legislation and they apply taxes on inheritances and donations differently.
For example, in other communities, the taxes to be paid for inheritance are usually minimal, however in other communities, the state laws apply, and these only contemplate state reductions. This is the same both in the case of donations.
There is no general rule for Spain as a whole. Therefore in a case of inheritance or donation with similar circumstances, where the same family members inherit or receive a donation of the same goods or assets, the tax to be paid would be totally different depending on the residence of the donor and beneficiary. This also varies depending on where the assets are located or assets.
Yet as it is the tax advantages are usually higher in case of inheritance than in the case of donations.
For practical purposes, it is cheaper to inherit than to receive a donation, but a donation, gives us more flexibility to distribute our goods to whom we wish and ensure that the assets are used as intended, you can apply conditions which must be met by the recipient, in order to receive the assets in question. This could be, for example, a particular task. If the conditions are not met, the donation may be revoked. The donation could also be revoked if there were physical or psychological abuse by the recipient to the donor.
However, in the example of the Valencian Community are the same reductions by kinship donations as within inheritance provided it is from parents to children or from children to parents, a tax reduction of 75% this is interesting because this allows you to distribute your assets freely.
Nevertheless, this is subject to each individual case and each person´s individual circumstances.
Inheritance in Spain. Watch the video.