Inheritance Tax is payable by beneficiaries on the death of someone.
Spanish national rules will apply if the deceased and/or beneficiaries do not live in Spain.
The payable amount by each beneficiary can vary depending on factors such as:
– relationship between deceased and beneficiary (relatives have higher allowances than others)
– estate value
– whether there have been prior gifts to the beneficiary.
– Pre-existing wealth of the beneficiary
Some beneficiaries are exempt from inheritance in the event that the estate value falls below certain thresholds. There are however variations between autonomous communities in this matter (f.i. children, spouse, parents and grandparents are entitled to 100,000 euro tax free in Valencian Community).
There is a sliding tax scale that starts at 7% up to 34%.
Spanish law requires inheritance tax forms are filed within six months after the death, otherwise, you may incur in fines of 5% – 20%, depending on the delay extent. Delays can be avoided requesting for a six month extension, which must be done so within five months after the death.
Please note, tax regulations and tax rates change frequently in Spain, so this information may be out of date. Therefore, it is highly advisable to contact us for the latest information.
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