On 1st January 2016 a new Law applicable to Inheritance Tax and Gift Tax came into force in the Canary Islands

Since 1st January 2016 both Inheritance Tax and Gift Tax are reduced in 99,9%. This applies to taxpayers included in groups I and II: descendants and adopted children under 21 years and descendants and adopted 21 or more years, spouses, parents and adoptive parents.

With regard to Inheritance tax: Taxpayers included in groups I and II of section/article 20.2 a) of Law 29/1987, of 18 December regarding inheritance and gift tax, apply a discount of 99,9% of the final tax bill.

Gifts: Taxpayers included in groups I and II of section/article 20.2 a) of Law 29/1987, of 18 December regarding inheritance and gift tax, will benefit from a discount of 99,9% of the final tax bill provided the gift has been formalized in a public document. This is not required in case of insurance contracts being taxed as donations (gifts).

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