There are many people who wonder What is better, donate or leave as an inheritance?, especially when it comes to transmitting assets of great value, as is the case of a home. The truth is that, as we will see, there is no single answer, since the taxation of this type of operation depends largely on the regulations of each autonomous community.
So that you clear your doubts and know how to value the transfer of real estate from parents to children, we will tell you all the details about inheritance or donation of homes.
Difference between inheritance and living donation
The first thing we must be clear about is What is the difference between inheritance or donation. The great distinction between these two ways of transmitting assets to our children or other relatives is that while the donation takes place during life, the inheritance can only take place upon the death of the deceased.
Therefore, if we donate we will be transferring ownership of an asset. inter vivos and, in the case of inheritance, it would be a transmission cause of death.
Both operations are subject to the so-called inheritance and gift tax. However, even if it is a single tax regulated by the same state law, each of these options entails a different tax burden. Each autonomous community has a wide margin when creating incentives for certain types of transmission.
Furthermore, as we will see, there are two other taxes associated with inheritances and donations: personal income tax and municipal capital gains.
What taxes must you pay for inheritance or donation?
The transmission of assets through inheritance or donation It is subject to different taxes. They are the following:
Inheritance tax and donations
In both cases, the taxpayer is the person who acquires, inherits or receives by donation. The building. It will be necessary to study the bonuses applicable at all times taking into account where tax should be paid depending on the operation.
IRPF
Regarding the Income Tax, its payment falls on the person who transfers the asset. In mortis causa transmissions nothing will be declared for this concept. However, in the case of a donation with capital gains, the capital gain must be declared in the Income.
Municipal capital gains
Regarding the tax on the increase in value of urban land, this tax is regulated at the local level and is applied in those cases in which there is an increase in the value of said land (not when its value has decreased or remains the same. ). Its payment corresponds to the person who receives the property as an inheritance or donation.
Inheritance or donation, how do you save more money on taxes?
It is impossible to know if more inheritance or donation is appropriate without taking into account the specific details of the operation.
In the case of the inheritance and gift tax, the autonomous communities usually focus on aspects such as the degree of kinship between the person who receives and the person who gives the inheritance or donation, age, certain personal characteristics of the recipient (such as some degree of disability) or of the well (for example, transferring a habitual residence) when designing incentives.
It is common for transfers of assets from parents to children to be subsidized, both in the case of donation and inheritance, with the incentives reducing as the degree of relationship decreases.
In the specific case of the inheritance or donation of real estatePlease note the following:
- In the housing inheritancethe tax is settled in the autonomous community where the deceased resided – where he had his habitual residence for the longest period of the last five years prior to the time of death -, regardless of where the heirs live or the location of the property.
- In case of housing donationthe tax is settled in the autonomous community in which the property is located
Taking these factors into account, it will be necessary to analyze the different scenarios that may apply, as well as the fiscal policy in each case to verify which option is more economical.
It is possible that, in the event that the community of residence and the location of the property do not coincide, the autonomy of residence has bonuses and the same does not occur in the autonomy of location, and vice versa.
As an example of the different tax policies regarding inheritances and donations at the regional level, the Canary Islands have approved a bonus 99.9% for children, spouses, uncles and nephews. Others that have also done so, as a result of the last regional elections, have been the Valencian Community and the Balearic Islands.
Regarding personal income tax, we will have to take into account regional differences, if they exist, although in this case we will not have much room for maneuver, since we will necessarily have to pay taxes in the community in which our tax domicile or habitual residence is located. .
Regarding the municipal capital gain, you will be taxed according to that of the municipality in which the property is located. Therefore, there is not much room to reduce your tax bill for this concept.
What is cheaper, an inheritance or a donation?
Taking all of the above into account, it is most advisable to analyze each regulation or go to a tax advisor that can present the different scenarios that you will face and their specific cost at the current moment.
In addition, we must remain attentive to possible regulatory changes and trends. For example, currently many autonomous communities have decided to ‘eliminate’ the inheritance and gift tax for the closest degrees of kinship, but this trend may change in the future.
2024-01-06 08:30:30
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