What is the estate tax?

The estate tax (IP) is a direct, general and personal tax that taxes the ownership or possession of the estate, falling on its net worth, periodically. It is a strictly individual tribute that falls on individuals and is complementary to personal income tax.

It is a state tax, established and regulated by the State, whose total yield is assigned to the autonomous communities, as well as certain regulatory powers have been assigned, in accordance with Organic Law 8/1980, of September 22, on the financing of the autonomous communities, and according to the new financing model established in Law 22/2009, of December 18, which regulates the financing system of the autonomous communities of common regime and cities with statute of autonomy, and are modified Certain tax regulations. The ownership of the powers of management, liquidation, collection, inspection and review of the tax corresponds to the State, without prejudice to the provisions of the respective laws of assignment to the autonomous communities.

Currently, the IP is regulated in Law 19/1991, of June 6, on wealth tax (LIP).

Although this tax is born on a temporary basis, the truth is that it has remained in our tax system to this day. It should be mentioned that during the years 2008 to 2010 it was abolished by Law 4/2008, of December 23, which abolishes the tax of the IP, the monthly refund system is generalized in VAT, other modifications are introduced in the tax regulations and the effective obligation to contribute by the IP is eliminated.

Through Royal Decree-Law 13/2011, of September 16, which restores the IP on a temporary basis, since it is contemplated exclusively in 2011 and 2012, and the subsequent declarations must be submitted, respectively, in 2012 and 2013, although In order to exclude taxpayers with an average patrimony, the limit for the exemption of habitual housing is significantly increased, as well as the exempt minimum that had been applied in the tax before 2008, without prejudice to the regulatory powers that on this matter hold the autonomous communities. It is through this rule that the application of the exempt minimum is extended with respect to taxpayers who pay by real obligation.

During 2014, 2015, 2016 and 2017, this tax continues to be demanded, since the corresponding laws of general budgets (Law 22/2013, of December 23, of general budgets of the State for 2014; Law 36/2014, of 26 of December, of general budgets of the State for the year 2015, and Law 48/2015, of October 28, of general budgets of the State for the year 2016 and Royal Decree-Law 3/2016, of December 2, for the adoption of tax measures aimed at consolidating public finances and other urgent measures in social matters for 2017) extended the validity of the tax for 2014, 2015, 2016 and 2017, eliminating, as in 2013, the reimplantation of the 100% bonus on the full tax quota that had been provided for in Royal Decree-Law 13/2011, of September 16, which restores the IP.

Through Law 6/2018, of July 3, on general state budgets for 2018, published in the BOE of July 4, 2018, with effect from January 1, 2018, this tax was renewed again, and for the year 2019 it will be demanded again since the Royal Decree-Law 27/2018, of December 28, by which certain tax and cadastral measures are adopted, published in the BOE of December 29, 2018, once again It contains the same forecast, this time with effect from January 1, 2019.