Reduction gift taxes on donations and inheritances between siblings in the Alicante area.

The Valencian Community will take another step this June in reducing Inheritance and Gift Tax. The Generalitat (Valencian Government) will apply from 01/06/2026 a 25% tax break to inheritances and gifts between siblings, a measure that seeks to alleviate the tax burden of these types of transfers, which are traditionally more heavily penalized than those between parents and children.

This is a demand that has been on the table for years and particularly affected families who, after receiving a home, money, or any other asset from a sibling, found themselves with a high tax bill.

With this reduction, the Consell (Valencian Government) intends to correct a situation that various sectors considered unequal within the tax system.

How the Inheritance Tax Will Work in the Valencian Community:

The tax break will be applied directly to the full amount of the tax and will affect both inheritances and gifts formalized between siblings within the Valencian Community. Thus, those who receive assets or property through this means will see the final amount payable reduced by 25%.

How to claim the tax reduction:

To qualify for this tax break, you will need to submit the corresponding self-assessment form to the Valencian Tax Agency and provide official documentation proving the sibling relationship.