Madrid Reduces Inheritance Taxes on Real Estate

28 October 2019 – Last week, the government of Madrid approved the first part of a promised tax cut. The new regulations increase the capital-gains tax bonus on inheritances of property; reducing the general Property and Real Estate Tax (IBI) rate. The government also reduced waste collection fees.

Immediate descendants and spouses can access the benefit, which is expected to save roughly 13.62 million euros per year for a total of 14,000 taxpayers. Currently, the government applies a 95% reduction to real estate taxes for properties with a cadastral value of up to 60,000 euros.

The government also increased the benefit from 75% to 85% for properties with a cadastral value of between 60,000 and 100,000 euros, rising from 50% to 70% for

Original Story: ABC Madrid – Marta R. Domingo

Adaptation/Translation: Richard D. K. Turner

Spanish Supreme Court Rules Against Barcelona’s Tax on Empty Properties

2 July 2019 – Richard D. K. Turner

The Third Chamber of the Supreme Court dealt Ada Colau a setback, ruling against a penalty on empty dwellings in the hands of financial institutions. The Supreme Court upheld the Superior Court of Justice of Catalonia’s ruling stating that the Barcelona City Council does not have the power to impose such a tax.

The municipal ordinance had set a rate of 633 euros for each case opened upon discovering an empty flat and 286 euros for each additional requirement in cases where the owner failed to comply with the municipal order.

Original Story: El Confidencial – Elena Sanz