When collecting life insurance, two taxes may be applied depending on your circumstances. In case of survival , for example, if it covers the disability benefit, it is taxed by the Individuals Income Tax (Personal Income Tax) . The second case is the most common, that of death , the heirs will pay taxes for the Inheritance Tax .
In the first case, the differences in taxation between autonomous communities are minimal. Although it is true that there is a state and regional section, the disparities of this are not so important, beyond some regional deductions that can be applied to life insurance charges or differences between tax rates.
Different case is the Inheritance and Donations Tax . The controversy between the enormous differences between Autonomous Communities is one of the fiscal debates that currently has more force. Those who pay less defend themselves in that charging a lot for an inheritance is “unfair” since they have already been levied for the mere fact of generating this wealth as with the Income Tax on work earnings or capital gains, or VAT or the Property Transfer Tax if we buy a good as a home. In communities that pay more, they criticize those who less for “unfair competition” and encourage. The reality is that what the beneficiaries of life insurance will charge in case of death can have large differences for different reasons.
Why these differences?
The little similarity at the time of paying the inheritance tax may be due to very different tax rates (percentages). The State determines that this type must be between 7.65% and 34%, which generates significant discrepancies, although the key to the disparity between regions is usually more in the application of different deductions until reaching the tax base of the tax.
These deductions depend on the Autonomous Community and are generally based on kinship, disability or nature of the assets. For example, Madrid establishes a 99% bonus on the fee for descendants, spouses and ascendants. This is what makes it much more advantageous to inherit than Andalusia who do not have this high bonus.
With all this we find Autonomous Communities with very low taxation such as the Canary Islands, Cantabria, La Rioja, Madrid, Basque Country and Navarra that contrast with others of very high such as Asturias, Andalusia or Extremadura.
The advantages of the down payment for the payment of the Inheritance Tax
The tax difference is even more important if we consider that the inheritance cannot be received until the Inheritance Tax has been settled . This leads in practice to many having to make a significant outlay with money that they do not have at that time. All this has led to increased inheritance waivers.
In the case of Mirasol Lepham life insurance we have a very important advantage to be able to unlock what we will receive for the insurance of which we are the beneficiary: The advance payment for the Succession Tax . Inheritance Tax allows us to make a prior settlement only of the part corresponding to Life Insurance and anticipate this amount, so that once paid, we can receive everything corresponding to life insurance. Amount that, in turn, in many cases, unlocks the total payment of the tax and receipt of the inheritance.
Even with tax differences, having life insurance with the best coverage is a guarantee for all your potential beneficiaries.