PALMA, 18 Jul. (EUROPA PRESS) -
The president of the Government of the Balearic Islands, Marga Prohens, has announced this Tuesday the suppression of the Inheritance and Donations Tax (ISD) between parents and children, grandchildren and grandparents and between spouses, both due to death and in inheritances in life through succession agreements .
Prohens has made the announcement public in the company of the vice president and spokesman for the regional government, Antoni Costa, after holding an extraordinary Government Council.
As explained by the president, the Government Council has also approved, via decree, the elimination of the Property Transfer Tax (ITP) on the purchase of the first habitual residence for people under 30 years of age and people with disabilities, with an income limit of 52,800 euros in an individual return or 84,480 euros in a joint return, with an amount for the home that cannot exceed 270,151 euros.
Both measures, explained the president, will mean a decrease in income of about 75 million euros (60 million for the Donation Tax and 15 million for the ITP). This reduction in income, however, according to Prohens, will not mean a reduction in the provision of public services. "There is more than enough room to lower taxes and to maintain and improve public services," said the leader of the Government.
The tax reform, which will not have retroactive effect, has been approved via Decree Law that will have to be validated within the next 30 days by Parliament after it is published in an extraordinary BOIB this Tuesday.
Regarding the impact on the number of beneficiaries, the Government leader has insisted that it is a measure that "benefits everyone" and that it was "urgent". "It will reach ordinary people who are waiting for the abolition once and for all of an unfair tax, which punishes those who have worked, those who have studied and those who have saved some savings. This is not about rich and poor", he has indicated.
Prohens has highlighted that it is a decree "without cheating" and without "small print" and has claimed the urgency of the measure when asked about the use of the decree route, when the PP in the opposition always criticized it .
DECREE OF FISCAL MEASURES
In the case of Inheritances and Donations, the reform contemplates that in the case of inheritances between siblings or between uncles and nephews, the reduction will be 50% if there are no descendants and 25% if there are descendants.
As for the ITP, it is reduced by 50% for the purchase of a first home for people under 35 years of age and for the purchase of a habitual residence for large families, single parents and families with dependent persons with disabilities. In the case of large families, the cost of housing cannot exceed 350,000 euros.
Regarding the elimination of the Wealth Tax, promised in the campaign, he has admitted that as long as the so-called Solidarity Tax is maintained, eliminating it would have no effect on the taxpayer, for which reason he has summoned to wait for a hypothetical reform of the next central government.