In the case of residents in Spain, if you receive an inheritance, whether from assets located in Spain or abroad, you must pay everything in the Spanish State. In this case, however, it is possible to deduct from Spanish inheritance tax taxes already paid abroad due to assets abroad. The basic elements used to calculate inheritance tax payments are the value of assets as well as life insurance payments. Taken together, they are called “impossible base”, to which an expression “tipo” is applied, and from there, the amount of tax payable, “cuota”, is determined. Inheritance tax is governed by the Spanish Civil Code. And this can only mean one thing: it really depends on the region or autonomous community in which you are located. The exact rate and allowances vary according to specific regional regulations and legislation. Inheritance tax is determined by the Law on Inheritance and Gift Tax and regulated by each autonomous region. Depending on where you live, this will affect the amount you pay in estate tax. If you have lived in Spain for five years, you are subject to regional inheritance tax regulations. If you are not resident in Spain, you are subject to national inheritance tax regulations. Changes to the inheritance law were introduced here in Spain in 2015 to comply with European Regulation 650/2012, which can have a significant impact on some inheritance beneficiaries. It is important to be aware of your individual situation and update your will if necessary so as not to leave your beneficiaries with problems and possibly in lengthy legal disputes over an inheritance.

The government calculates inheritance tax based on the value of the deceased`s property and other assets. As a Brit who lives in Spain or owns property, there are a number of considerations when it comes to estate planning. If you would like more information on how to avoid the usual pitfalls of Spanish inheritance tax for non-residents, or if you need advice on any of the issues raised, you can contact us at info@blacktowerfm.com or contact us using this form. For inheritance tax, there is another concept: the group If you plan to leave a Spanish property in your will, it is important to understand inheritance tax in Spain in order to plan your succession. This way, you can determine whether it`s best to leave your property to your family members or sell it to pay the tax. Although the table above gives you an idea of the amount to pay, there are a few exceptions. The amount of inheritance tax you have to pay can be reduced by certain exemptions. The Spanish authorities do not release an estate until all Spanish inheritance tax has been paid. Beneficiaries have six months to pay their taxes, but can apply for a one-time extension of six months or pay in installments.

You may already have a will in your home country that can be updated to include your Spanish assets. However, it`s important to make sure you`re familiar with Spanish inheritance tax law, as you may need to update your will accordingly to ensure that the beneficiaries of your choice receive your inheritance. However, we strongly recommend that you draw up a Spanish will and seek professional advice on all matters relating to inheritance tax in Spain. However, there are so many factors that need to be applied that it is essential to seek professional legal advice for all estate matters. Planning your legacy? Do you need to claim an inheritance? Our guide to inheritance tax in Spain covers Spanish inheritance law, death and inheritance tax rates. Therefore, it should be noted that while British expats will notice some differences in terms of inheritance law in Spain. Unlike other countries, the beneficiary of the inheritance pays Spanish inheritance tax on property received after death and on gifts for life. Inherited pension funds are also subject to inheritance tax. If an inheritance is not claimed, if there are no heirs or if the inheritance is rejected, the inheritance passes to the Spanish State. Inheritances are often rejected in Spain because the tax due outweighs the benefits. With this in mind, at Balcells Group, we provide accounting and tax planning services to expats that can really help you with your inheritance. For British expats living in Spain, this is an important consideration, as Spain`s inheritance law is much more complicated – and potentially much more punitive – than the UK`s.

In the UK, for example, assets left to your surviving spouse or partner are exempt from inheritance tax. However, as there is no notion of “succession” of a person in Spain, all beneficiaries are subject to Spanish inheritance tax in one form or another. However, given the complex rules surrounding gift and inheritance tax in Spain, it may be helpful to consult a family law lawyer and hire them to act on your behalf. This option could work particularly well for people living outside of Spain. The Spanish inheritance tax rates set by the national government are progressive and are divided into the following areas, depending on the amount of the inheritance: Each beneficiary must complete the inheritance tax forms and pay taxes on the value of his individual acquisition (either on the individual patrimony or on a share of the estate). The fourth group includes cousins, other relatives, unmarried partners (unless region permits) and those who are not related. These do not benefit from exemption from inheritance tax.-If you are not resident, you only pay for the acquisition of assets located in Spain, whether the deceased resided there or not. In this case, you cannot deduct taxes paid abroad to reduce your Spanish inheritance tax liability. Contact us, explain your situation and together we will find a way to help you and your family with your legacy! Fast response guaranteed.

Spanish law provides for a number of reductions in inheritance tax. These differ according to the relationship between the heir and the testator. Beneficiaries in Spain can be divided into four groups when it comes to inheritance tax: The Spanish Directorate General of Taxes (Agencia Tributaria, colloquially known as Hacienda) regulates inheritance tax in Spain and the associated reliefs. This is done in accordance with the Inheritance and Gift Tax Act (IGTA), which creates a common platform to regulate inheritance and gift tax. However, each autonomous region may change the tax rates and reductions applicable to its own territory. Even though an estate is the most common subject of this tax, there are two other conditions under which it also applies here. If you accept a donation or take a sum of money from life insurance policies of any kind, you will also have to pay inheritance tax. Our team of experts offers professional advice to save you time and money in the succession process in Spain. Contact us to find out how we can help you.

This region of Spain applies deductions for inheritance tax in Spain for kinship, disability and heirs over 65 years of age, as well as for assets such as: In the UK, this tax is exempt if the spouse is involved in the inheritance process. This is not the case in Spain. Here, after the death of one of the two members of the couple, the surviving dependant must pay inheritance tax on the assets collected worldwide. You may find the following links useful on tax and inheritance tax issues in Spain: The deduction of Spanish inheritance tax is a concept that reduces the tax liability of the family members who receive the transfer. If a tax deduction applies, you will need to prove your relationship.