Residents of Valencia, Alicante and different elements of La Comunitat Valenciana have a number of constructive tax adjustments arising within the subsequent 12 months. These are the brand new wealth, inheritance, reward, property and private revenue tax situations within the area.
In Could 2025, the right-wing formation of PP and Vox which governs within the japanese Spanish area of Valencia handed far-reaching fiscal laws which impacts locals and overseas residents.
It entails adjustments to wealth tax, inheritance and reward tax, property switch tax and private revenue tax.
The modification will come into drive when it passes by means of the plenary session and is revealed within the Diari Oficial de la Generalitat (DOGV).
This implies it will likely be relevant for the 2025 tax return, which will likely be filed in spring 2026, similtaneously the Revenue Tax return referred to as the declaración de Renta.
Wealth tax
This 12 months roughly 10,000 Valencian taxpayers, out of the 28,000 at present required to pay Wealth Tax, is not going to have to take action, because of the modification which raises the exempt minimal from €500,000 to €1 million.
The reform additionally implies that these with belongings exceeding the €1 million threshold — excluding their main residence, will see their tax base lowered by €500,000, successfully paying a lot much less.
In line with the newest information from the Tax Company for the 2022 fiscal 12 months, 26,905 individuals within the area of Valencia paid Wealth Tax that 12 months.
This added as much as a complete of €186 million. Of the practically 27,000 taxpayers in 2022, a complete of 9,839 had belongings, excluding their main residence, which have been between half one million and €1 million. With the brand new rule, it implies that they may all be exempt from paying this tax.
READ ALSO: Everything you need to know about Spain’s wealth tax
Commercial
Inheritance and Present Tax
The foundations have modified on the subject of inheritance and reward tax amongst these in kinship group III. This contains second and third-degree relations (first cousin, good, nephew, great-grandparent, great-aunt and so on) in addition to ascendants (mother and father, grandparents) and descendants by affinity. This additionally contains siblings.
This modification will come into impact progressively.
For taxable items or inheritance given on or after June 1st, 2026: 25 %.
For taxable items or inheritance given on or after June 1st 2027: 50 %.
Commercial
Property Switch Tax and Stamp Responsibility or Documented Authorized Acts Tax
With impact from June 1st, 2026, the overall charge for property transfers on the acquisition and sale of actual property and property rights will likely be lowered from 10 to 9 %.
A brand new property switch charge of 4 % can also be being launched for the acquisition of rural plots that meet the authorized necessities to be thought-about agricultural land by skilled registered farmers.
With impact from June 1st, 2026, the overall charge for stamp obligation or documented authorized acts tax (AJD) will likely be lowered from 1.5 to 1.4 %.
A 50 % low cost on the AJD is launched for notarial public deeds associated to the acquisition, grouping, aggregation, segregation, or division of actual property, supplied that the funding initiative has been declared a challenge of regional curiosity.
Private revenue tax
Tax advantages are being improved to strengthen insurance policies that help beginning, adoption, and foster care.
Along with these adjustments, numerous technical enhancements are being made to different private revenue tax incentives. These embody the regulation of deductions for donations and the deductibility of healthcare bills reminiscent of buy of prescription glasses.
There can even be additional deductions for donations for ecological functions or donations supposed for Valencian cultural heritage or the promotion of Valencian language. This will likely be a deduction of 20 % for the primary €250 and 25 % for the remaining quantity.
