Murcia has its own inheritance tax regulations as a result of the Spanish State ceding the tax revenue of inheritance and gift tax to Comunidades Autónomas, along with some regulatory autonomy to adapt tax to the particular circumstances of the respective Comunidad Autónoma.

This means that most Comunidades Autónomas have ruled new (and huge) benefits compared to those established by the Spanish State.

While the tax scheme and regime is the same in all parts of Spain, the Comunidades Autónomas took advantage of the given power to fix higher thresholds, or different rates or direct reductions on the amount to be paid (and sometimes all of these) to benefit close relatives of the deceased or disabled people. There are also benefits that help promote local business, farming, etc. as well as in the acquisition of the Comunidad Autónomas’ cultural assets.

However, the Comunidades Autónomas change their regulations quite frequently so it is necessary to check the regulation in force at the time the tax is due (the day of death).

In Murcia, even though there is a different tax rate, that is slightly higher than that of the State Law for higher value acquisitions ( over 398.777 €), there are deductions for decendants under 21 up to 99% of the tax to be paid and for descendants over twenty one, ascendants or spouses up to 50% of the tax to be paid ( for successions opened from 8/8/2015. For successions opened before that date, the deduction for ascendants, descendants and spouses can also amount to 99 %. if the total value of the assets to be acquired, with the applicable reductions, ( base liquidable) is 300.000 or under; or 450.000 or under if the beneficiary is disabled.

From the first of January 2017, the deduction changes again for descendants of 21 or over, ascendants and spouses, being fixed at 60%, but it can increase to 99% if the beneficiary is part of a family which qualifies under the special regulations for large families, provided that the deceased was a member of that family.

From the first of January 2018, the deduction is up to 99% for relatives within Group I and II, with no added requirements.

In Murcia there are peculiarities related to the reduction of the value of the house which has been the habitual residence of the deceased and in the acquisition of an individual enterprise, professional business or share in a company.

In the acquisition of an individual enterprise, professional business or share in a company, from the first of January 2018, the beneficiaries can be relatives up to the fourth grade.

Registered unmarried partnerships  have equal rights to those of a married partnership when registered in the official registers in Spanish Comunidades Autónomas, or in those of other EU or EEA states .

All these cases are accounted for in the calculator

• The question now is who can take advantage of these benefits:
• If the deceased was a resident in Spain, the inheritance tax law of Murcia is applicable if the deceased lived there for most of the five years immediately prior to death.
  If the deceased had lived longer in another Comunidad Autónoma than that in which they had their last residence, within this last five year period, that Comunidad Autónoma’s rule will be applied.

  If the deceased was a resident in Spain, but for less than five years at the time of death, no Comunidades Autonomas Law will be applicable, BUT Spanish State Law will be applied.

• If the deceased was a non-resident in Spain, BUT the beneficiary is, the tax payer can choose to apply the rule of the Comunidad Autónoma where the most valuable assets are located and, if there are no assets in Spain, the Law of the Comunidad Autónoma where they live.
• In cases where both the beneficiary and the deceased were non-residents, the tax payer can choose the law of the Comunidad Autónoma where the most valuable assets are located.These options for non-residents, are the result of a long process that has evolved in Spanish Law since the European Court of Justice resolution of September 2014.
  

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