Spanish Inheritance Tax.

Irrespective of the present existence of a discrimination between  resident and non residents as to the payment of the inheritance tax, mention to  this was made previously on this bloq, we would like to give you certain clues to minimise the tax taken the  present regulations.

At this stage in the case of real estate in Spain owned by a non-Spanish resident, the State rules will always apply on the death of the non-resident owner.  The tax will be calculated on the  market value of the property at the time of the death and the rate ranges between 7,65 % and 34 %. Depending on the relationship with the deceased there is a certain  amount on which no tax is due, which is approximately 16.000 Euros in case of spouses and descendants.

Therefore it may convenient to leave your property to more than one heir, because apart from the amount tax exempt,   the  tax scale is applied to each heir individually  starting alsways at 7,65 % for the first  part of the   value of their estate to be received.

Also  taken into account that the value of the property can be divided between the value of the life interest ( which will depend on the age of the user )  and the mere ownership, you could also  consider leaving the life interest of the property to  a person ( for example spouse ) and the mere ownership to  the  descendants. This normally will reduce the inheritance  tax  to be paid for the surviving spouse  and  the  descendants (final heirs ) will be paying the tax in two phases.

For more information or an appointment please contact us on (0034) 952 822 321 or admin@nonresidenttaxesinspain.com. 

Web: www.nonresidenttaxesinspain.com