Guide to Spanish Inheritance tax,
A Guide to Spanish Inheritance tax,
IMPORTANT ANNOUNCEMENT
You may be aware of this already, but it’s something many people who own property in Spain don’t know.
It’s about the taxes payable when an owner of property in Spain passes away.
If you have ever wondered about the details of inheritance tax, it’s simply this:
Your hard earned legacy may have to be sold off to pay crippling tax bills when you pass away?
Spanish Inheritance tax, death duties , legal fees - up to 40% .
So, right now, can you be absolutely sure that those you leave behind will have the money to cover those costs?
Of course we would all prefer our children and grandchildren to enjoy the property we’ve worked so hard to own, and not be forced to sell it to cover onerous tax demands.
Equally as worrying, did you know that in the UK system of IHT, a husband or wife is usually an exempt beneficiary?
But in the Spanish system...
Your husband or wife will not be exempt from Spanish Inheritance Tax.
It's a sobering thought, isn't it?
For a Fuller explanation
http://www.spain-info.co.uk/Spanish-Inheritance-Tax.htm
Are you saying this tax is payable by people with residencia in Spain. A widow I know said she did not have to pay inheritance tax. I also understood you were exempt if you were over 65? It would be more helpful if people were told how much they have to pay, what you seem to be saying is that you have to scrimp and scrape so you can afford to die.!!!!!!!!!!!!!!!!!!!!!!!!
Hello Alan & Gloria,
If both Husband & Wife are full Tax Resident of Valencia Region when one passes away then it is possible that they may only have to pay 1% of the value of asset when inheriting. Unfortunately some owners have been Resident of Spain and move back to the UK for health reasons and when one passes away they have been back in the UK for more than 6 months so have forfeited their Valencia advantages. For Residents of Spain who are no longer Resident of Spain when they inherit, or their children, or beneficiaries who are not Resident of Spain are Taxed by the central Tax office of Madrid so the Regional laws are irrelevant which is where the big problem is.
Hello Eve,
Please make note that the advantage for being Resident of Spain and over 65 refers to Capital Gains Tax and not Spanish inheritance Tax. Capital Gains Tax in Spain is currently 19% and is charged on the profit on the sale of a property. If you would like to find out how much Spanish Inheritance Tax may have to be paid by the Beneficiaries then you can apply for a free illustration via the link above headed 'For a Fuller explanation'
I was advised that the Valencian Community was protected from paying this onerous tax when passed to the Spouse of a departed Husband/Wife.so long as they met certain criteria.Are you saying this is not so.