Both inheritance and gift taxes in Murcia offer interesting benefits for straight line heirs and beneficiaries, as well as for the surviving partner. Third-degree gift beneficiaries can also enjoy tax benefits. In this article, we explain why inheritance tax in Murcia (as well as gift tax in Murcia) is so low.
Inheritance in Murcia: different taxes
1. Inheritance tax in Murcia
Compared to other Spanish regions, Murcia has a low tax exemption in inheritance tax: 15,956.87 euros. By comparison, in Valencia it is 100,000 euros and in Andalusia as much as 1,000,000 euros. This exemption applies to the surviving partner and direct line descendants over 21 years old.
The tax rates range between 7.65% and 36.5%. After that, the tax is increased by a coefficient between 1 and 2.4. Fortunately, as in other regions, there is a tax reduction of 99% for straight line heirs and the surviving partner. This keeps inheritance tax in Murcia particularly low for this group.
How do you calculate inheritance tax in Murcia?
- Take the value of the estate and deduct debts and expenses. In this example, we take €300,000 per straight heir as a starting point.
- Subtract the exemption of 15,956.87 euros. The taxable base is then 284,043.13 euros.
- Apply the tax brackets (between 7.65% and 25.50% in this example), resulting in an amount of €51,397.81.
- Multiply this amount by the coefficient. Up to €402,678.11, the coefficient remains 1.00, so the amount remains €51,397.81.
- Reduce this amount by 99%. The final tax is only €513.98.
More information on inheritance tax in Spain can be found here.
2. Municipal capital gains tax (plusvalía municipal)
In addition to inheritance tax, there is also a municipal capital gains tax, the plusvalía municipal. This is a tax on the cadastral surplus value of land. This tax is always payable on urban properties, regardless of the region. You can read how to calculate this tax here.
3. Taxes in Belgium or the Netherlands
If the deceased was a resident of Belgium or the Netherlands, the tax rules of these countries also apply. In Flanders, for example, inheritance tax paid abroad can be offset against Flemish inheritance tax.
Donating in Murcia: different taxes
1. Gift tax
Murcia does not offer a general tax exemption for gifts, but it does offer a significant tax reduction: the tax due is reduced by 99%. This applies to the surviving partner, direct line descendants and second- and third-degree relatives. This makes donating in Murcia particularly advantageous.
2. Capital gains taxes
Donations should also be taken into account:
- Municipal capital gains tax: just like inheritances.
- National capital gains tax: this tax can be avoided if you can prove that the gift value is less than the original purchase value, including acquisition costs.
3. Taxes in Belgium or the Netherlands
In Belgium, you pay no gift tax on foreign property. There is also no 5-year suspect period. In the Netherlands, however, tax is due.
Free webinar on inheritance and gifting in Murcia
On Thursday 03/04/2025 at 19:00 we organise a free webinar on inheritance and gift tax in Murcia. In it, we explain why it is beneficial for Belgians to gift property in Murcia. Registration can be done via this link.
Do you have questions about inheriting and gifting in Spain? Feel free to contact us.
