farewell to the succession jumble — idealista/news

The last one Maneuver introduced important novelty on the inheritance tax 2024, eliminating the notion of succession accumulation and therefore imposing an adjustment in the succession model. However, the donor pool remains unchanged. For the purposes of calculating the rates on properties, please note that they can vary, depending on the case, from 4% applied for direct relatives or spouses for the value that exceeds 1 million euros, up to 8% without deductible for all the other subjects. Please note that transfers made to people with severe disabilities (with recognized Law 104) can benefit from an exemption of 1.5 million euros.

The inheritance tax maneuver: what changes

With circular 29/E of 19 October 2023 and the provision dated 8 November 2023 of the Revenue Agency, the new maneuver on inheritance tax introduced a great innovation: the abolition of the successor accumulation. This concept – article 8, paragraph 4, of the Consolidated Law on the provisions on inheritance and gift tax (TUS) – refers to the fictitious aggregation of donations made during life by the deceased to the heirs, legatees or anyone belonging to the inheritance.

As a result, the inheritance tax rate is calculated, from 2024, on the value of this fictitious combination. It is essential to underline that the inheritance tax still provides exemptions which can change depending on the degree of kinship between the deceased and the heir: it is precisely the proximity or otherwise that determines the rate.

It must be kept in mind that the donative accumulationthat is, the “fictitious reunion of the discounted value of the donations previously made by the donor with the overall net value of the assets subject to the donation” .

What changes in succession in 2024?

The inheritance tax reform did not affect some taxes:

• mortgages;
• cadastral;
• stamp duty;
• special taxes.

At the same time, the rates that can be applied remain unchanged and the percentages of which are given below, although it should be clarified that these must be interpreted in light of specific cases:

• 4% for the value exceeding 1 million Euros – reserved for direct relatives or spouses;
• 6% for the value exceeding €100,000 – reserved for brothers and sisters;
• 6% without any deductible – reserved for all other relatives.
• 8% without deductible, on the total value, for all other subjects.

It is therefore clear that the succession declaration template has been updated and the new version has already been made available online. Compared to the previous model, we note the elimination of the ES framework relating to donations and free acts.

A focus on estate inheritance taxes

However, the recent maneuver that modified the 2024 succession declaration form did not affect some taxes, including:

• mortgage taxes, applied to deeds involving a transfer of ownership or the establishment of real rights on real estate, common sale, donation and inheritance. The rate is 2% on the value of the property and is paid only once at the time of the deed or cadastral transfer.
• cadastral taxes, applied to all deeds that involve a change to the cadastral data of properties. The rate is 1% and must be paid once;
• stamp dutyto be applied to various deeds and documents, including those relating to sales, inheritances and land registry transfers.
• special taxesadditional costs relating to services rendered by the Revenue Agency, such as the issuing of documents or certificates and to be paid depending on the service requested.

In the case of inheritance of a first home, if the beneficiary of the inheritance meets the requirements to be able to access the advantages of the first home itself, then the mortgage and land registry taxes have a fixed cost of €200 each – for a total of €400 – regardless of the value of the property itself.

It should be underlined that taking advantage of the tax benefits reserved for the inheritance or donation of the first home does not preclude the possibility of obtaining the same benefits again in the event of the purchase of a first home.

In general, i.e. when you do not have a first home, in the case of donations of real estate or a real estate right, it is necessary to pay theMortgage tax of 2% of the value of the property and thecadastral tax with a rate of 1% on the value of the property.

How to calculate inheritance tax

To calculate the 2024 inheritance tax, in addition to the rates and exemptions, it is necessary to also consider the amount of the cadastral income, increasing it by 5% and, subsequently, multiplying by the following coefficients:

• 110 – properties used as a main residence;
• 120 – properties in cadastral category A or C;
• 140 – properties in cadastral category B;
• 60 – properties in the cadastral category A/10, i.e. professional studios and offices, as well as D;
• 40.8 – properties in the cadastral category C/1, such as commercial shops and E.

The deadlines for submitting the succession declaration are unchanged, although it should be noted that it may not be submitted in the case of:

• renunciation of succession
• inheritance devolved to the spouse or direct relatives of the deceased
• it does not provide for real estate or real estate rights.

To date, the calculation of inheritance tax requires in-depth knowledge of the legislation and it is essential to have a complete picture of the patrimonial situation (movable and immovable) of the deceased and the heirs. Therefore, regardless of the simplifications, it is essential to refer to a professional in the sector who can address the individual case with an overall vision of the situation.