Spanish inheritance tax is a tribute that taxes assets acquired as a result of an inheritance. Discover how it affects you if you live in Marbella.
What is the scope of spanish inheritance law?
Spanish inheritance tax applies throughout the Spanish territory. Each Autonomous Community can freely determine its amount and each municipality the corresponding bonuses, so the landscape of spanish inheritance law is very complex, especially for foreign residents.
This tax affects all assets that are in Spain (indemnities for life insurance, real estate, bank accounts, vehicles …).
The subjects obliged to pay the spanish inheritance tax are the heirs (those who will receive the goods and rights in free acquisition mortis causa) and the beneficiaries (those destined to collect the compensation resulting from life insurance).
In any case, only natural persons are obliged to pay inheritance tax. The legal persons should pay corporate tax.
How is the Spanish inheritance tax in Marbella?
Before the reform of January 1, 2018, the inheritance tax paid in Andalusia was one of the highest in Spain. This situation has changed radically with the regulatory modification.
The exempt minimum has gone from € 250,000 to € 10,000,000. If it is inherited below that amount, the inheritance tax must not be paid. Only sons, spouse or parents of the deceased can benefit from this exemption.
- The reform is not retroactive. For those who died before January 1, 2018, the previous system (much more expensive for heirs) will continue to govern.
- The reform will not apply to people who have recently renounced inheritance or who have been penalized for non-payment of spanish inheritance tax.
This is a hard situation, in which according to the date of death one system or another is applied to the heirs. Only those people who have the services of lawyer in Marbella can live this process much more easily and comfortably.
It is important to consider if you are entitled to any municipal bonus. In the case of Marbella, heirs can enjoy a reduction in municipal capital gain of up to 95% in some cases. Having professional advice of a solicitor in Marbella will allow you not to overpay for inheriting in Spain. Discover the legal services of our law firm.
How is spanish inheritance tax paid?
The spanish inheritance tax must be paid in the Autonomous Community where the deceased resided (Andalusia in the case of Marbella).
Spanish inheritance tax is accrued from the date of death of the deceased. The term that the heirs will have to pay it is six months from the death.