Spanish Inheritance Tax Home > Inheritance Tax In Spain

What can I do if no will has been made?

Please see the article posted in the Articles & Guides section about claiming an inheritance in Spain where there is no valid will

What should I do if the will is not Spanish?

Please see the article posted in the Articles & Guides section about claiming an inheritance with a non -Spanish will

Yes. Any publicly executed debt such as a mortgage may be deducted as may the final health costs and funeral expenses up to prescribed limits.

A time-limit of six months is applied such that failure to pay any due taxes within six months from the date of death of the testator will result in fines being applied.

There is a statute of limitations such that if you wait for 4.5 years (the initial six month period plus four years), the liability for inheritance tax passes and good title can then be passed. 

However, it should be understood that at any point during that time, should the authorities become aware that the owner has passed away, they can present a bill with the fines and penalties referred to above. 

Of course, given the financial crisis that Spain is enduring  there is considerably more pressure on regional giovernments to ensure that  all taxes are collected.

See the article: Inheritance tax rates for a straightforward  guide with examples.

According to Article 27.2 of the 'Ley General Tributaria' the charges for late payment of Inheritance Tax are as follows:

• within 3 months of the deadline - 5% surcharge;

• within 6 months of the deadline - 10% surcharge

• within 12 months of the deadline - 15% surcharge

The regulations provide for postponement of the payment as well as payment in instalments to make payment of the tax somewhat easier. The rules are:

• Payment may be deferred for up to one year where there are insufficient liquid funds that can be converted to use for payment. This must be requested before the expiry of the six-month time-limit that runs from the date of death of the deceased ;

• The inheritance tax due to be paid may be split into instalments over a period of up to five years where this is also requested in advance of the expiry of the original six month period and the debt requires a guarantee that the tax will be paid off. Interest is payable

• Where the beneficiaries of an estate are unknown, payment may be delayed for a period of one year and paid in instalments over a five year period. A guarantee is required

For more information go to Extensions Deferrals and Penalties

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