This Monday, the Canary Islands Council of Government approved the 99.9% rebate on Inheritance and Gift Tax, meaning that it will cease to receive some €18 million per year. This measure will basically affect families in the case of Inheritance (children, spouses, uncles, aunts and nephews and nieces), while third or fourth-degree relatives and external relatives will be left out in the case of gifts.
This region joins the Valencian Community and the Balearic Islands, which have also eliminated this tax, as promised by the Partido Popular in its electoral programme for the regional and municipal elections of 28 May.
In a press conference, the Councillor of Finance, Matilde Asián, justified the measure by stating that citizens are already 'overtaxed' through personal income tax, wealth tax, capital gains tax and land value tax.
She also warned that there is a 'high' consultancy cost because many families let the tax lapse and then go to consultancy firms to process it, which entails 'very steep additional costs', especially for middle and low incomes.
She also said that up to 2,000 Canary Islanders renounced their inheritance last year because they could not afford it and that the average tax base declared last year was €35,000 in inheritance and €40,000 in donations, similar figures so far this year, which shows that a tax on the classes with the greatest purchasing power is not being eliminated. 'It could not be', she commented.
Asián pointed out that in the Canary Islands, there is 'favourable' tax treatment for all taxes except this one, and she understands that 'it makes no sense' for a Canary Islander to have to pay more than in other autonomous communities.