inheritance tax

Question Hello, I am Bruce Johnson, could you please give me further details about how much

Question Hello, I am Bruce Johnson, could you please give me further details about how much inheritance tax will I have to pay in Spain?


As I said last week, it is advisable to make a will in Spain for several reasons.
If you have a Spanish will you do not have to wait for the payment of the inheritance in your home country. Otherwise, you will have to wait until this is done and then you will need to provide a translation of the probate proceeding and apostle-stamp on the document  (a stamp in accordance with the Hague convention on certification of signatures by official bodies).  Only then can papers be brought to Spain to make the necessary changes in title deeds and bank accounts. As this process can take a long, you might incur in penalties, because in Spain you have to pay your inheritance tax within six months.
Inheritance Tax: How much is it?
Where property, and generally, the estate of a person is transferred by inheritance, the Tax authorities charge a percentage on the tax base according to a sliding scale where different considerations are taken into account. The same scale is applicable to donations, which is important insofar as this tax could be applied to a purchase/sale contract where the Tax Authority deems that the parties have under-declared the price of the property on a Public deed of conveyance or, in some cases, private purchase contract.
Donees and inheritors are divided into four categories, depending on the relationship with the deceased, and allowances are conceded depending on the group.
  a.. Group 1: Descendants and adopted children under 21: 15,638€ rising to 7.000.000 aprox. Depending on age.
  b.. Group 2: Descendants and adopted children over 21, spouses, parents and adoptee  parents: 15,638€
  c.. Group 3: Relatives in second and third degree, that is, brothers/sisters and nephews/uncles, respectively: 7,831€
  d.. Group 4: Relatives in fourth degree, or without any relationship, for example, a friend: Zero.
Once the appropriate allowance has been deducted, the following tax rate is applied to the remainder
      Amount in Euros
     Percent
      0 up to 7,831
     7.65
      Up to 15,662
     8.50
      Up to 23,493
     9.35
      Up to 31,324
     10.20
      Up to 39,155
     11.05
      Up to 46,987
     11.90
      Up to 55,365
     12.75
      Up to 62,649
     13.60
      Up to 70,480
     14.45
      Up to 78,311
     15.30
      Up to 117,407
     16.15
      Up to 156,503
     18.70
      Up to 234,695
     21.25
      Up to 390,958
     25.50
      Up to 781,315
     29.75
      ABOVE
     34
When the tax has been calculated, a multiplicand is applied to the figure, taking into account pre-existing wealth as well as relationship with the deceased. It has to be noted that Spain does not recognise the concept of partners or common law spouse when applying inheritance tax.
      MULTIPLICAND
      Pre-existing wealth in Euros
     Group I & II
     Group III
     Group IV
      From 0 to 390,658
     1.00
     1.5882
     2.0
      From 390,658 to 1,965,309
     1.05
     1.6676
     2.1
      1,965,309 to 3,936,629
     1.10
     1.7471
     2.2
      3,936,629
     1.20
     1.9059
     2.4
An inheritor who qualifies for the bottom of both scales and falls in group 4 will find the Tax Authority demands from him prior to registering the property under his name a monstrous percentage of 81.6 of the estate left.
Fortunately, very few people qualify in such groups, and if they do, there are legitimate ways to get round this bite. A versed lawyer on inheritance matters will assist you in order to mitigate the exposure of this tax.
Where are Spanish wills registered?
A most widely used type of will is signed before a Notary Public, who keeps the original. A copy is then sent to a central registry of wills, which is located in Madrid. This registry issues a certificate upon death of the testator with the contents of the will and is necessary in order to procure the transfer of the assets on to the inheritors.
Gonzalo Blanco This email address is being protected from spambots. You need JavaScript enabled to view it.
C/Reina 21 Xativa. VALENCIA
C/Mero 4 , Dénia. ALICANTE
Telephone: 96 6420719
http://www.lawyerblanco.com

 


 will I have to pay in Spain?As I said last week, it is advisable to make a will in Spain for several reasons.
If you have a Spanish will you do not have to wait for the payment of the inheritance in your home country. Otherwise, you will have to wait until this is done and then you will need to provide a translation of the probate proceeding and apostle-stamp on the document  (a stamp in accordance with the Hague convention on certification of signatures by official bodies).  Only then can papers be brought to Spain to make the necessary changes in title deeds and bank accounts. As this process can take a long, you might incur in penalties, because in Spain you have to pay your inheritance tax within six months.
Inheritance Tax: How much is it?
Where property, and generally, the estate of a person is transferred by inheritance, the Tax authorities charge a percentage on the tax base according to a sliding scale where different considerations are taken into account. The same scale is applicable to donations, which is important insofar as this tax could be applied to a purchase/sale contract where the Tax Authority deems that the parties have under-declared the price of the property on a Public deed of conveyance or, in some cases, private purchase contract.
Donees and inheritors are divided into four categories, depending on the relationship with the deceased, and allowances are conceded depending on the group.
  a.. Group 1: Descendants and adopted children under 21: 15,638€ rising to 7.000.000 aprox. Depending on age.
  b.. Group 2: Descendants and adopted children over 21, spouses, parents and adoptee  parents: 15,638€
  c.. Group 3: Relatives in second and third degree, that is, brothers/sisters and nephews/uncles, respectively: 7,831€
  d.. Group 4: Relatives in fourth degree, or without any relationship, for example, a friend: Zero.
Once the appropriate allowance has been deducted, the following tax rate is applied to the remainder
      Amount in Euros
     Percent
      0 up to 7,831
     7.65
      Up to 15,662
     8.50
      Up to 23,493
     9.35
      Up to 31,324
     10.20
      Up to 39,155
     11.05
      Up to 46,987
     11.90
      Up to 55,365
     12.75
      Up to 62,649
     13.60
      Up to 70,480
     14.45
      Up to 78,311
     15.30
      Up to 117,407
     16.15
      Up to 156,503
     18.70
      Up to 234,695
     21.25
      Up to 390,958
     25.50
      Up to 781,315
     29.75
      ABOVE
     34
When the tax has been calculated, a multiplicand is applied to the figure, taking into account pre-existing wealth as well as relationship with the deceased. It has to be noted that Spain does not recognise the concept of partners or common law spouse when applying inheritance tax.
      MULTIPLICAND
      Pre-existing wealth in Euros
     Group I & II
     Group III
     Group IV
      From 0 to 390,658
     1.00
     1.5882
     2.0
      From 390,658 to 1,965,309
     1.05
     1.6676
     2.1
      1,965,309 to 3,936,629
     1.10
     1.7471
     2.2
      3,936,629
     1.20
     1.9059
     2.4
An inheritor who qualifies for the bottom of both scales and falls in group 4 will find the Tax Authority demands from him prior to registering the property under his name a monstrous percentage of 81.6 of the estate left.
Fortunately, very few people qualify in such groups, and if they do, there are legitimate ways to get round this bite. A versed lawyer on inheritance matters will assist you in order to mitigate the exposure of this tax.
Where are Spanish wills registered?
A most widely used type of will is signed before a Notary Public, who keeps the original. A copy is then sent to a central registry of wills, which is located in Madrid. This registry issues a certificate upon death of the testator with the contents of the will and is necessary in order to procure the transfer of the assets on to the inheritors.
Gonzalo Blanco This email address is being protected from spambots. You need JavaScript enabled to view it.
C/Reina 21 Xativa. VALENCIA
C/Mero 4 , Dénia. ALICANTE
Telephone: 96 6420719
http://www.lawyerblanco.com

 

Additional information