Protect Your Legacy with Inheritance and Succession Specialist Lawyers from Nextica Law & Tax
Planning the future of your estate is delicate: without good management, family conflict and unnecessary tax can arise. We offer comprehensive inheritance advice —wills, legacies, usufruct and succession instruments— and optimisation of Inheritance Tax.
Planning for the future of your estate can be a delicate process filled with uncertainties. If not managed properly, it can lead to family conflicts, unnecessary tax burdens, and a distribution of the estate that does not reflect your true wishes. At Nextica Law & Tax, we are aware of these pain points and offer comprehensive advice on inheritances: from preparing wills to managing legacies, the correct application of all succession institutions, and the tax optimization of the transfer.
THE INHERITANCE TAX IN CATALONIA — THE REGULATIONS THAT APPLY
Catalonia has its own regulation for the Inheritance and Gift Tax (Law 19/2010, of June 7, regulating the inheritance and gift tax in Catalonia), with reductions and bonuses that differ from those in other autonomous communities. Knowing the Catalan specificities can mean a difference of thousands of euros in the settlement: The amounts of the reductions may vary due to regulatory updates. Contact our team for the amounts in effect at the time of processing.
| Family group | State base reduction | Particularities Catalonia (Law 19/2010) |
|---|---|---|
| Spouse / Stable partner (Gr. II) | 100,000 € | Reduction €100,000 + additional reduction for primary residence up to €500,000 (95% of the value). Discounted rate on low installments. |
| Children and descendants (Gr. I and II) | €100,000 (children) · €50,000 (grandchildren) | Reduction of €100,000 per child + €12,000 additional for each year under 21. Disability reduction up to €275,000. |
| Brothers / Uncles / Nephews (Gr. III) | €8,000 | More limited relationship reduction. The tax burden is significantly higher than for descendants. |
| Family business | 95% of the value | 95% reduction in the value of the company or holdings in the IS if the requirements of art. 20.2.c LISyD (BIZNISS) are met. Critical for the continuity of the family business. |
Spouse / Stable partner (Gr. II)
Children and descendants (Gr. I and II)
Brothers / Uncles / Nephews (Gr. III)
Family business
What's worth knowing
We minimise the tax burden for your heirs
We avoid family conflict while respecting your wishes
Expert advice by autonomous region
What's included
1. Preliminary analysis of the estate
inventory of assets, liabilities, and debts. Determination of the estate mass and approximate tax without planning.
2. Design of the succession strategy
choosing the most suitable institutions (will, inheritance agreements, lifetime donations, life insurance) to minimize the tax burden and ensure the wishes of the testator.
3. Drafting of the will
with all the necessary succession institutions and the precautions to prevent challenges.
4. Complete processing of the inheritance
from the death certificate and the certificate of last wills to the tax settlement and the registration in the Property Registry.
5. Inheritance Tax Optimization
application of all available reductions and tax benefits, especially in family business.
6. Family protocol
for family businesses, regulation of succession in the company and the relationship between heirs who are also partners or future partners.
En detalle
Will
The will is the ultimate instrument of estate planning. In Catalonia, the Catalan Civil Code (art. 421-1 et seq.) regulates the various types: open notarial will (the most common, with greater legal security), closed will, and holographic will (handwritten, signed, and dated by the testator). A well-drafted will prevents 80% of inheritance conflicts. Without a will, succession is governed by the rules of intestate inheritance, which rarely match the wishes of the deceased.
Legacies (art. 427-1 et seq. CCCat)
The legacy is the testamentary attribution of specific assets to a specific person (the legatee), outside of the general distribution of the inheritance. It is a key tool to ensure that certain assets of sentimental or economic value reach the person that the testator wishes, without being subject to negotiations among the heirs.
Usufruct
Guarantees the right to use and enjoy certain assets without the usufructuary being the full owner of the asset. The universal usufruct in favor of the widowed spouse is the usual solution to ensure that the surviving spouse can continue enjoying the family heritage without transferring full ownership, preserving the capital for the descendants.
Succession agreements (art. 431-1 et seq. CCCat)
A figure unique to Catalan law. They allow for the arrangement of succession in life through a public deed, providing greater legal security than a will and can be combined with present donations. They are particularly useful in family businesses to plan the transmission of the business to the heirs who will continue it, reducing fiscal impact and avoiding future conflicts.
Frequently asked questions
How much inheritance tax is paid in Catalonia?
Taxation depends on the value of the inheritance, the degree of kinship, and the heir's pre-existing wealth. In Catalonia, spouses and children with low taxable bases can be taxed very minimally due to regional reductions. For family business inheritances that meet the requirements of art. 20.2.c LISyD, the reduction can reach up to 95% of the value of the transferred company.
What is the deadline for submitting the Inheritance Tax?
The deadline to submit the Inheritance Tax declaration is 6 months from the date of death, extendable for another 6 months upon request to the Tax Agency of Catalonia. The extension must be requested within the first 5 months. Submitting the declaration late generates surcharges and late payment interest.
What are the requirements to apply the 95% reduction in a family business?
To apply the 95% reduction on the mortis causa transmission of shares of a family business (art. 20.2.c LISyD), the following must be met: (1) the company must carry out a real economic activity (not mere ownership of assets), (2) the deceased's participation must be at least 5% individually or 20% in the family group, (3) the deceased or a member of the family group must hold executive functions with remuneration that represents more than 50% of their work income and economic activities, and (4) the heirs must maintain the participation for at least 5 years.
Can I waive an inheritance with debts in Catalonia?
Yes. The renunciation of the inheritance must be formalized in a public deed before a notary. If the heir renounces, they are not liable for the debts of the deceased. There is also the possibility of accepting the inheritance with the benefit of inventory, which limits the heir's liability to the value of the inherited assets. In Catalan law, the benefit of inventory is regulated in arts. 461-15 and following of the CCCat.
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