4/7/2026
GIFT TAX
- A temporary 50% reduction of the gift tax is proposed to encourage early gifting or estate planning.
- Currently, gift tax applies to the net value of each gift, using a progressive rate from 1% to 25%
- Although only 50% of the tax will be payable, the full amount may be credited against the future inheritance tax.
- Donations between spouses will be permitted on an irrevocable basis.
- In addition, gifts will be exempt from the judicial approval procedure (insinuación) and must be granted by public deed. The donor will also be required to file a sworn statement declaring their estate for the purpose of safeguarding forced heirship rights.
- Taxpayers will have a period of 12 months, counted from the first day of the month following the publication of the law, to execute the gift and benefit from this regime.
- Gifts may not exceed 75% of the donor’s estate.