Spain's leading law firm for conveyancing, probate, litigation, breach of contract, family & matrimonial law and Spanish inheritance tax.

news
	Vat on new builds reduced from 8% to 4% Spanish Government finally reacts to construction crisis

	Spanish housing minister appeals to British buyers to return Reforms promised to property and banking law

	Gloomy report on Spanish property market No recovery until 2016

	Repossession cases on the increase Repossession cases heard by Marbella

	El Archivo de Antequera aumenta sus fondos La familia Ramos deposita documentos relacionados con los 140 años de actividad de su despacho de abogados

	Foreign exchange Latest mid-market GBP to EUR

	Bank of Spain proposes doubling provisions for repossessed properties Proposed changes will drive property prices down

	Latest financial scandal Landsbanki mis-selling of equity release schemes

	Bogus Law Firms Fraudulent emails and website cloning

guides
	Guide to Spanish probate Probate in Spain and inheritance law

	Contesting a Spanish will Contentious probate & Disputed wills

	Applying for Spanish NIE number NIE application form in English

	Guide to drawing up last will and testament Use of non Spanish wills in Spain

	Deed of dissolution of joint property ownership Re-arranging assets following divorce or separation

	Divorce or legal separation in Spain Guide to Spanish divorce or separation

	Guide to buying property in Spain Legal guide on purchasing property in Spain

	Taxation of Pension Income in Spain Spain - a favourable tax environment

published articles
	Bank and insurance guarantees Enforcing a claim under bank or insurance guarantees

	Buy with confidence Avoid the pitfalls

	Executing a power of attorney Risks involved in executing a power of attorney

	Rural property Risks involved in buying rustic or rural property

	Refinancing and equity release schemes Spain an unregulated market place

	Starting a business in Spain Pitfalls of buying a business in Spain

	International child abduction Parental child abduction - Child abduction in Spain

Spanish Inheritance Tax

Guide to inheritance tax in Spain

Spanish inheritance tax or probate tax in Spain is incredibly complex as there are both national and regional variations. For regional rules to apply it is normally necessary for the deceased to have been habitually resident in the region for five years and sometimes it is also necessary for the beneficiary to have been resident and to continue to remain resident.

Spanish inheritance tax

Spanish inheritance tax is payable if either the recipient is resident in Spain or if the asset passing on death is property in Spain. It is payable by the recipient and not the estate.

No husband-wife exemption

As regards inheritance in Spain there is no husband wife exemption and where both are resident in Spain then the surviving spouse is fully liable on the worldwide assets of the deceased spouse.

Tax payable

The amount payable depends on a number of factors such as:

Value of asset inherited
Pre-existing wealth of beneficiary
Relationship between deceased and beneficiary

Deductions or allowances
The surviving spouse, children, grandchildren, parents and grandparents can each claim a deduction of EUR15,956.87
Other relatives (brother, sisters, aunts, uncles, nieces, nephews & step children) can claim a deduction of EUR7,993.46
Non-relatives and distant relatives (ie cousins) are not entitled to any standard deduction.
Children between the age of 13 and 21 are entitled to additional increased deductions starting at EUR47,858.59 for a child aged 13 and thereafter reducing proportionally up to 21 years of age.

Spanish inheritance tax rates

Tax base	Tax	Marginal %
0	0	7.65
7,993.46	611.50	8.50
15,980.91	1,290.43	9.35
23,968.36	2,037.26	10.20
31,955.81	2,851.98	11.05
39,943.26	3,734.59	11.90
47,930.72	4,685.10	12.75
55,918.17	5,703.50	13.60
63,095.62	6,789.79	14.45
71,893.07	7,943.98	15.30
79,880.52	9,166.06	16.15
119,757.67	15,606.22	18.70
159,634.83	23,063.25	21.25
239,389.13	40,011.04	25.50
398,777.54	80,655.08	29.75
797,555.08	199,291.40	34.00

Multiplier

Existing net worth	Group I & II	Group III	Group IV
Up to EUR402,678	1.0000	1.5882	2.0000
EUR402,678 to EUR2,007,380	1.0500	1.6676	2.1000
EUR2,007,380 to EUR4,020,770	1.1000	1.7471	2.2000
Above EUR4,020,770	1.2000	1.9059	2.4000

Group I - Children & adopted children of less than 21 years of age
Group II - Children & adopted children of more than 21 years of age, parents, grandparents
Group III – Brothers, sisters, aunts, uncles, nieces, nephews & step children (not adopted)
Group IV– All others beneficiaries and distant relatives (including cousins)

Prescripción or 4 year limit
The liability to all Spanish taxes expires four years after the date upon which taxes should have been paid. Spanish law requires that an inheritance be declared and all taxes paid within 6 months of death. Therefore after 4 years and 6 months no inheritance tax is payable. However in the intervening period the beneficiary is exposed to significant penalties and interest.

Surcharge & interest on late payment

Number of months late in making payment	Surcharge/Interest
0 to 3	5%
3 to 6	10%
6 to 12	15%
12 +	20% + statutory interest

Statutory interest ( Interés de demora ) is calculated from end of surcharge period (ie 12 months from the date that the tax should have been paid) until date payment is actually made at 5% from 4 April 2009 (previously 7%).