Baleric Islands remove tax on gifts between direct family members

With effect from 25 July 2025, the Inheritance and Gift Tax regulations in the Balearic Islands will exempt gifts between direct family members (i.e. spouses, children, and grandchildren) from taxation. The new regulations introduce a 100% deduction on tax liability for gifts between family members in Groups I and II.

Until now, only inheritances between these family members were 100% tax-exempt, while gifts remained taxable.

This legislative change improves the Balearic Islands’ tax attractiveness, aligning them with other autonomous communities such as Madrid, Andalusia and the Canary Islands by eliminating Inheritance and Gift tax on gifts and inheritances between immediate family members.