The new Balearic Islands government has announced the abolition of inheritance tax for direct line heirs. Between siblings, there will also be a reduction in inheritance tax in the Balearic Islands.
Only inheritance tax was communicated, not gift tax. Transfers under an inheritance agreement would also fall under the full exemption.
The abolition applies to both parents, the children and the surviving spouse.
What the full exemption will look like is currently unclear. Concrete legislation is expected during August 2023.