The tax break launched by the Government of the Canary Islands for the Inheritance and Donation Tax has registered, when it is about to complete one year of its implementation, the desired effect, since it has enabled an increase of 18% in donations in the first quarter of 2024.
The Vice President and Minister of Economy, Industry, Commerce and Self-Employed of the Government of the Canary Islands, Manuel Domínguez, highlights that this bonus, applicable to 99.9% of inheritances and donations, "boosts the Canarian economy and helps families maintain their wealth. In addition, homes can also be used as a habitual residence or as an economic and financial asset."
Domínguez set that goal as soon as he accessed the regional Executive, understanding that "it was not appropriate to transfer a greater final burden to families, as the previous Government did, for the transfer of assets that constitute, in essence, the object of a lifetime of savings and work," he explained.
Data from the General Council of Notaries indicate that, in the first quarter of 2024, there were 2,347 people who made some type of donation in the islands when, during the same period of 2023, it was not possible to exceed 2,000.
"The regulatory change that we have promoted in the archipelago - continued Domínguez - is already noticeable with a significant reduction in the renunciations of inheritances, of almost 3.8% compared to the first quarter of 2023 after 16 years of continuous increase in these figures."
In the housing section, the National Institute of Statistics (INE), for its part, reflects that the free transfer of real estate grew by 11% in the Canary Islands after 686 properties availed themselves of this formula during the first half of this 2024.
The Donation Tax bonus extends in the Canary Islands up to the second degree of consanguinity (parents, children, grandparents, grandchildren or siblings) and up to the fourth degree for inheritances (all of the above and also uncles and nephews).
