Inheritance tax, bonification between spouses and parents and children
In Spain, inheritance tax is ruled by region, instead of by the National Government.
The Valencian region has enacted a new law, which applies to any inheritance tax arising from the 28th of May 2023.
Under the new regulations, in the Valencian Region, inheritance tax between spouses, or parents and children, has a 99% reduction.
To put that into figures: if someone in the past had to pay 10.000 euros inheritance tax, now they will only have to pay 100 euros, so as you can see, the tax is virtually abolished. Please note that this reduction only applies when the beneficiary of the inheritance is the spouse, or biological parent or child of the deceased, in any other circumstance inheritance tax stays as it was.