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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 spam bots, 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 spam bots, you need Javascript enabled to view it
C/Reina 21 Xativa. VALENCIA
C/Mero 4 , Dénia. ALICANTE
Telephone: 96 6420719
http://www.lawyerblanco.com
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