Inheritance Tax in Spain

by Five Fantastic Lawyers™ on August 9, 2013


Post regarding Spanish inheritance tax levied on capital gains obtained through inheritance by individuals.

Let’s analyze the general scheme. In some Autonomous Regions  there is much more favorable tax regime (inherit is much cheaper) than in the rest of Spain. The criterion for the application of this scheme is the residence of that dies during a specified period in the territory. But for UK residents with properties in Spain will apply the general scheme.

Who pays: the tax is paid each receiving something in the estate.

The amount of tax depends on several factors:

  • The value of the property received by: the scale is progressive, that is, the percentage paid is greater the higher is the value of heritage.
  • The relationship to the deceased: the more distant is the relationship, the higher the percentage you pay for. In addition, depending on the relationship there are certain initial quantities (which are revised every year) who pay nothing. This means that there is a minimum exemption depends on the closeness of kinship.
  • The previous heritage from which it inherits: if the inheriting is an important pre-fixed assets in tax-law also is more expensive inherit.
  • There is moreover pay less tax inheritances, with certain conditions, such as the family business or the family home if the heirs are the spouse and children.

The instance must be present before the Tax Office to pay the tax no later than 6 months after the death. If that deadline passes, the Treasury charges the corresponding penalty.

The deed of partition is a tax return, you just have to submit it to the Tax Office, without documents. In the Inheritance Tax is not required to do a self-assessment (although it is allowed), i.e. only you submit the data, and Tax Office calculates and communicates the amount to be paid.

As you can see, always are facilities to pay!

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