Lawyers in 45 Offices Across Spain
Inheritance Law by Region
- Inheritance Law Alicante
- Inheritance Law Andalucia
- Inheritance Law Canaries
- Inheritance Law Cantabria
- Inheritance Law Cast.La Man.
- Inheritance Law CastillaLeon
- Inheritance Law Cataluña
- Inheritance Law Galicia
- Inheritance Law Cataluña
- Inheritance Law Madrid
- Inheritance Law Murcia
Articles and Guides
National vs Regional Tax Rules
Only those who have been ordinarily resident in a particular region of Spain over the balance of a period of five years prior to their death will have the more generous regional inheritance tax exemptions applied to their estate.
In addition it will require the beneficiary to be resident in some part of Spain.
If not, the national rules apply. What this means of course is that, more often than not, the rules for most non-Spanish beneficiaries will be those at the less generous national level.
Therefore it is important to understand the national tax rates and how the inheritance tax liability is calculated including any exemptions that are available.
Firstlly, we take a look at the personal exemptions that are available at the national level.
The exemptions available at a national level may be summarised as follows:
|Group I||€15,956 plus €3990 for each year under the age of 21 years up to a max deduction of €47, 858|
|Group IV||No deductions available|
Guide to Groups
In Spain a beneficiary is assigned a category or Group depending on their relationship with the deceased, as per the following table:
Group I Children, including adopted children, under the age of 21
Group II All other children, spouses and parents
Group III Close relatives such as brothers and sisters, grandparents, aunts/uncles
Group IV More distant relatives
In addition to the above exemptions, should any beneficiary be disabled, further exemptions ranging between €47,858.59 and €150,253.03 depending on the level of disability.
Life Insurance Policies
If the deceased took out a life insurance policy in favour of a beneficiary there is an exemption up to the value of €9,159.49 where the beneficiary is a spouse, child or parent.
Inheritance of the Family Home
An exemption also exists for tax payable on the permanent or habitual residence. The definition of habitual residence is the same as that used in Spanish Income Tax legislation and presupposes time having been spent living in the property.
The classification of a property as the family home will be assisted throughthe presentation of supporting evidence such as tax returns with the property listed as the habitual address of the taxpayer.
This exemption applies equally to a
spouse, children and parents of the deceased at a rate of
95% of the value of their inherited portion of the
property up to a maximum value of €122,606.47 each. An
important proviso exists in that the property may not be
sold for a period of 10 years after the inheritance.
Other relatives further removed, may
also benefit from this exemption but must have been living
with the deceased in the property for a period of at least
two years prior to the date of death.
What Clients Are Saying About Us
"Very happy overall. Far cheaper than the other quotations I got to do the same work."
P. Higgins, Newcastle
"Happy with the service. Was good to see that the price included the power of attorney and the other documents we needed. "
S. James, Leicester
"As we don't live close to the lawyers offices we signed the deed at a notary close to Alicante airport which was convenient as well as the price being very reasonable."
N. & J Ainsley, Middlesborough
"We made joint wills and it is just a relief to know that we will lose very little to inheritance tax. That had been a big worry for us."
R Kinley, Surrey
"Getting a version of the will in English and Spanish was great and also the advice from our lawyer was very helpful."
M Brennan, Hull