Urgent news from the Balearic Islands: Inheritance tax has been abolished on the islands and families can breathe a sigh of relief! Balearic Prime Minister Marga Prohens has announced after an extraordinary Council of Ministers meeting that the controversial tax will no longer be levied on kinship groups I and II (parents, children, grandparents, grandchildren and spouses). The new regulation is already in force.
Inheritance tax, which was previously graduated according to the estate and could amount to up to 20 per cent, was perceived by many as burdensome. But now families on the Balearic Islands can breathe a sigh of relief and enjoy noticeable relief. The abolition of the tax was one of the central election promises of Prime Minister Marga Prohens.
The reform particularly affects kinship groups I and II, where heirs no longer have to pay inheritance tax. The tax on inheritances during lifetime was also abolished, which provides even more financial relief.
The decision to enact the measure by legislative decree may be met with incomprehension by some observers. But Prime Minister Prohens stressed that it was time to give families in the Balearic Islands a helping hand. The inheritance tax was described as "unfair" as it placed an additional burden on people who had worked hard for their savings, especially given the current economic challenges and inflation.
Some voices criticised the measure, claiming that it would mainly benefit the rich. However, Prohens firmly rejected this. She stressed that the reform would benefit families and cost the Balearic Islands 60 million euros a year due to the loss of tax revenue.
Overall, it can be stated that the abolition of inheritance tax is a welcome relief for families in the Balearic Islands and offers them more financial security for the future.