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A taxpayer inquired whether a 95% reduction in Inheritance and Gift Tax (ISD) could be applied when inheriting a property located in a historic centre. The Directorate General for Taxes (DGT) ruled that this is possible provided the asset is part of the Historical or Cultural Heritage of the Canary Islands, the heir is a spouse, descendant, or adoptee, and the property is retained for at least ten years.
This ruling clarifies the eligibility criteria for significant tax relief on properties of historical significance, specifically within the Canary Islands jurisdiction, emphasizing the necessity of both the asset's classification and the heir's relationship to the deceased.
The tax team reviews your specific situation.
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