In the Official Bulletin (Gazette) of the Canary Islands number 253 of 31 December 2015 was published the Law 11/2015 of 29 December of the General Budget of the Canary Islands in 2016. The Preamble of the Act states: <<on taxation matters is included the bonus of 99.9% of the Inheritance and Gift Tax for first and second-degree. In recent years, there have been many inheritances renounced for not being able to meet the payment of the excesive duty debt, in an unfavorable economic environment for many families.>> . This way comes into effect the promise of the Canarian Government to meliorate the inheritance and gift tax (which is practically abolished).
The Act amends the Legislative Decree 1/2009 with effect from 1 January 2016 stating:
<< Bonus kinship share: Taxpayers included in the groups I and II provided for in Article 20.2 a) of Law 29/1987 , of December 18 , the inheritance tax , apply a bonus 99.9 100 of tax liability arising from the acquisitions 'mortis causa' (succession by reason of death) and amounts received by the beneficiaries of life insurance policies that accrue to other goods and rights that make up the hereditary portion of the beneficiary ... Also it will be applied a <<discount of 99.9 % of tax liability arising from the acquisitions 'inter vivos' (gifts), provided the donation was formalized in a public document>>.
Group I refers to descendants under 21 (legitimate or adopted), whilst Group II descendants older than 21, spouse, parents, adoptive parents.