Canary Islands abolishes inheritance and gift taxes

Despite the fact that this decision will reduce tax revenues by 18 million euros.

It will mainly affect immediate relatives in case of inheritance (children, spouses, uncles, aunts, nephews and nieces). Third or fourth degree relatives and external relatives will be exempt from taxes in the case of a gift procedure. The Canaries thus join the Valencian Community and the Balearic Islands, which have also abolished the tax.

According to experts, this innovation was influenced in part by the fact that about 2,000 islanders abandoned their inheritance last year due to the financial inability to pay the tax.

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