Actual abolition of inheritance tax in the Canary Islands

Following the lead of most Spanish regions, such as Andalusia, Murcia, Valenciana and the Balearic Islands, the Canary Islands are now following suit with a actual abolition of inheritance tax and gift tax. This entry provides more information on the new inheritance tax in the Canary Islands.

A 99.9% reduction in inheritance tax for extended family

There will be a 99.9% reduction in the inheritance tax due for the extended family. These are the surviving partner, children, as well as brothers & sisters and nieces & nephews. This extended family will thus pay virtually no inheritance tax.

Note: in case of an inheritance in Spain, the heirs are still municipal capital gains tax owed on the transfer of property. In addition, there may be Flemish inheritance tax to pay.

A 99.9% reduction in gift tax for partner and children

There will also be a 99.9% reduction in gift tax. Some limited conditions do apply here:

  • the donation is executed through a notarial deed;
  • and no donation must have been received in the past 3 years applying the 99.9% reduction.

However, unlike inheritance tax, the reduction is limited to the surviving spouse and children.

Note: for the recipient of a gift, there will be virtually no more gift tax, but the donor still pays national capital gains tax and municipal capital gains tax on real estate. So a donation is not necessarily fiscally beneficial.


Thanks to the reduced - effectively abolished - inheritance tax, the Canary Islands are broadly one of the most interesting tax regions in Spain.

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