Economist Gonzalo Bernardos Clarifies Impact of Spain's Inheritance Tax on Working-Class Families

In Spain, the inheritance tax ('impuesto de sucesiones') applies to those who receive assets such as money, property, or shares upon someone's death. However, economist Gonzalo Bernardos, a professor at the University of Barcelona, stresses that heirs from working-class families do not pay this tax. He explains that the tax principally targets wealthy individuals inheriting substantial wealth they did not generate themselves, while many inheritances are partially or fully exempt depending on the fiscal benefits offered by different autonomous communities across Spain.

Bernardos defends the inheritance tax against criticisms labeling it a "death tax," clarifying that the tax is paid by heirs, not the deceased. He also addresses concerns of double taxation alongside the Personal Income Tax (IRPF), noting that IRPF is levied on income generation, whereas inheritance tax pertains strictly to wealth transmission. According to Bernardos, the inheritance tax plays a vital role in funding public services and represents a more progressive fiscal effort compared to the Value Added Tax (VAT), which disproportionately impacts lower-income individuals.

These comments come amid ongoing debates over regional exemptions and the tax's fairness, with Bernardos emphasizing the importance of the tax in Spain's public finance framework. His expert insights help clarify misconceptions, especially the political narrative that inheritance tax burdens all heirs equally, by highlighting the differentiated effects based on wealth and social class.