People who inherit or receive their sibling’s main home in Andalucia will benefit from a 99% reduction in inheritance tax, it has been announced.

Junta president Juanma Moreno revealed the tax cut in the Andalucian Parliament on Thursday.

The measure will apply specifically to a habitual residence transferred between siblings, rather than to every inheritance or gift involving brothers and sisters.

It is expected to be included in the regional government’s 2027 budget and could benefit approximately 3,500 people.

Who will qualify?

The 99% reduction will apply when somebody inherits or receives as a gift the habitual home of a sibling, provided that the property and beneficiary meet the conditions established by the legislation.

The agreement between the PP and Vox envisaged introducing the relief when siblings had lived together in the property. Full eligibility requirements are expected to be detailed when the budget and accompanying tax legislation are published.

For qualifying beneficiaries, the reduction will effectively eliminate almost all the inheritance or gift tax payable on the property.

Andalucia already provides a 99% reduction for qualifying inheritances and gifts between parents and children and between spouses.

The new measure will extend comparable relief to certain property transfers between siblings, who belong to Group III under Spain’s inheritance-tax classification.

Wider reductions remain under discussion

The PP-Vox agreement also included a commitment to progressively cut inheritance and gift tax by 50% for Group III relatives, which includes siblings, aunts, uncles, nieces and nephews.

The 99% relief for a habitual home represents the first stage of that wider commitment.

Moreno described the measure as his regional government’s eighth round of tax reductions, arguing that lowering taxes leaves families with more money to meet other expenses.

He said personal income-tax revenue in Andalucia had risen by 71% since 2018 despite the previous reductions, partly because the region now has approximately one million more taxpayers.

The 2027 budget is also expected to reduce the general property transfer tax rate from 7% to 6.75% as part of a broader package intended to improve access to housing.