Sometimes the taxes that are paid to inherit are so high that some would prefer to give up the inheritance for the disbursement that it can suppose. Although everything depends on each Autonomous Community, in the case of Madrid, the conditions are better, since the Inheritance Tax is exempt in an 99%, when it comes to direct heirs.
Right nowL City Hall of the Capital it adds up and will lower from the July 1 up to an 90% the Tax on the Increase in the Value of Urban Land (IVTNU), known as Municipal capital gain. In addition, it eliminates the requirements to benefit from the bonus, such as coexistence in the habitual residence of the deceased and that the beneficiary remained registered in it the five years thereafter.
This payment, significant for many pockets, will be a significant saving for direct heirs. An example, for a dwelling of about 90.000 euros of cadastral value, the fee to be paid will be about 470 euros against the previous 4.698 euros.
These news from the City Council join those promoted by the Community of Madrid that the 1 of January of this year lowered to the 6% (compared to the 7% previous) the Tax of Patrimonial Transmissions (ITP), tax on the second transmissions, qWe already have in another post. And another tax that was reduced is that of ADocumented Legal Documents (AJD), what happened From 1% to 0.75%. This taxes the purchase of new homes, which carry VAT, and deeds of mortgage in general.
Although a good part of these concessions have a marked electoral character, welcome are due to the savings they suppose.