99% relief for transferring a family business
The Government of the Valencian Community will almost completely reduce inheritance and gift tax to facilitate the transfer of a family business—including farms, professional businesses, and shares in holding companies—from one generation to the next without a significant tax burden. This measure provides a 99% relief on the tax payable on the transfer of assets for relatives up to the fourth degree of kinship, and it will apply to all heirs in cases where the business founder is retired.
Personal income tax deductions
As the head of the regional government, Juanfran Pérez Llorca, stated, family businesses make up more than 90% of the business structure of the Valencian region and generate around 80% of jobs and GDP. He also recalled that about one million taxpayers with a taxable base of up to €60,000 (individuals) or €78,000 (married couples) will be able to benefit from personal income tax deductions for medical expenses—such as dentistry, optometry, or mental health—as well as for sports activities and the treatment of rare or chronic illnesses.
Additional tax breaks
These measures are complemented by other benefits already introduced, in particular:
- a 99% discount on inheritance and gift tax between children, spouses, and parents;
- for siblings and nephews/nieces, the relief will be 25% in 2026 and will reach 50% in 2027;
- the rate of the property transfer tax has also been reduced from 10% to 9%, and for people under 35 buying their main residence—from 8% to 6%;
- for documented legal acts, the general rate is reduced from 1.5% to 1.4%.
Simplifying regulation and speeding up procedures
Pérez Llorca said that tax cuts can be combined with strong public services through efficient management. Among the measures adopted, he highlighted the approval of a decree-law that made it possible to simplify 1,300 articles across 170 regulations, increase flexibility in commerce, strengthen legal certainty, and set a maximum period of one month for issuing permits to connect to the electricity grid. He also assured that this reform helped unblock more than 10,000 backlogged cases, accelerating economic and administrative activity in the Valencian Community.
