Inheritance in Life in Catalonia: What are they, Advantages and obligations
In Catalonia, What is called a “living inheritance” is actually a donation, that is to say, of a free transfer of assets or rights from one person to another before the death of the donor. This formula, in the Catalan community, It is mainly regulated by Law 19/2010, of 7 June, regulation of inheritance and gift tax. In this article we summarize the most important aspects of this and other regulations related to living inheritances in Catalonia, in case you are considering saving your heirs the inconveniences of a traditional succession.
Content
Living inheritances in Catalonia Vs. Succession agreements
Inheritance in life in Catalonia are typified as a Individual donation, anticipated and Inmediata, And it allows the owner of the property to witness how their decision benefits their loved ones. THE DONATORY You just have to accept so that the inheritance passes into your hands.
Unlike Succession pacts, Characteristic of Catalonia, This kind of pacts are not defined as a simple “act”, but imply the elaboration of a contract where two or more people plan the succession and designate the heirs. Besides, While a donation can fall on any person, A pact can only be held among certain relatives.
Depending on your personal and family circumstances, at Vidal Law Firm & Sánchez we will advise you the best option, both for you and your family. Why, besides, Taxation is different depending on the alternative you choose. As inheriting lawyers in Sabadell y inheritance lawyers in Badalona, We have experience in multiple cases of this type, and we always prioritize the wishes of the families, minimizing the economic burden that it may entail for them.
How much do I have to pay after a living inheritance?
In a living donation in Catalonia, The main tax that must be paid is Inheritance and Donation Tax, in the form of donations. Attention! Accounts with one month term from the date of the donation to submit the self-assessment and pay the tax, what you should process for model 651 before the Tax Agency of Catalonia.
Nevertheless, if they have donated an urban property to you, you must also assume municipal capital gains, that is to say, the Tax on the Increase in Value of Urban Land.
You can ask us for advice professional on how to calculate and manage these taxes from this link INTACEMENT CONTACT IN HERENCES.
3 advantages of donations or inheritances during life
First of all, donations can be applied tax reductions, a list that is not exactly small and that we will show you in the next section.
Secondly, when the destination of the assets during the donor's lifetime becomes clear, the possibility of future inheritance disputes is reduced.
Y, finally, there is an immediate transfer of the assets, so that the beneficiary receives them (and you can enjoy it) without waiting for the death of the donor.
Reductions available in donations in Catalonia
Next, We list the percentages that can be applied to the tax base of the gift tax, that is to say, those that are discounted directly from the net value of the goods or rights received before calculating the amount to be paid. In the case of the donation for the first habitual residence of descendants, a reduction of the 95% of the donated value, whether real estate, land or money destined for the acquisition, with a limit of 60.000 euros per donee that can be extended to 120.000 euros if he has a disability equal to or greater than 65%. When it comes to the donation of a business or professional business, The reduction also reaches 95% on the net value of the assets assigned to the activity, as long as there is a close relationship with the donor. In relation to the donation of shares in entities, The overall reduction is 95%, being able to reach 97% in the case of labor companies. If the donation consists of money to establish or acquire a company or shares, A reduction of the 95% of the amount donated with a limit of 200.000 euros that can be increased up to 400.000 euros if the donee has a recognized disability. Regarding the donation of historical heritage assets, a reduction is expected 95% of its value as long as the donee is a spouse, stable couple, descendant or ascendant. In contributions to protected assets of taxpayers with disabilities, the reduction is 90% on the excess amount.
On the other hand, Donations made to non-profit entities enjoy a reduction in the 95%. Finally, in the case of donation of certain rural properties dedicated to forestry or agricultural holdings, There is also recognition of a reduction in 95% of the value, provided that the established legal requirements are met.
Obligations of Donatarios in Catalonia
Apart from the declaration in the Treasury, through the model 651 aforementioned, and payment of taxes, When receiving an inheritance during life, it is necessary Go to a notary to make the donation a public deed, for its legal validity.
And in the case of real estate, after signing the deed and paying the taxes, the donee must register the transfer in the Property Registry so that ownership is fully recognized.
Not in the 100% of the cases it can be indicated (or possible) a gift or inheritance during life. Thus, In this other entry on our blog you can find out about How to write a will and prepare it correctly in 2025.
For more questions you can contact an inheritance specialist by clicking on the button.