Inheritance Tax for non residents
Liable to this tax are the persons receiving an inheritance, bequest or legacy and not having have their usual residence in Spain, as well as residents in Spain if the deceased person did not have his/her usual residence in Spain.
The competent Tax authority is the Special Branch of the Tax Authority in Madrid, i.e. depending on the State Tax Agency (AEAT), whereas for residents in Spain, the competent tax authority is the regional tax authority.
It is important to know that the filing deadline for acquisitions resulting from death is SIX MONTHS from the date of death. For the case that the delay in obtaining the necessary documents from abroad (i.e. Certificate of Inheritance) might make it difficult to comply with the deadline, it is advisable to apply for an extension of the six months delay, but that must be done within FIVE MONTHS from the date of death.
How to pay the tax:
It is possible and advisable to pay the tax using the self-assessment Form 652 “Inheritance Tax Simplified Returnâ€. A Tax Identification Number (NIF) and tax identification labels provided by the Tax Agency are necessary. Before requesting them, Non-resident foreign national taxpayers must apply for a Foreign National’s Identity Number (N.I.E.).
Main documents to be presented
• Deed of Acceptance of the Inheritance (certified and simple copy), or, failing this, an Inventory of Assets and Heirs, in duplicate.
• Death Certificate.
• Certificate from the General Registry of Wills and Testaments.
• Copy of the Will or the Declaration of Heirs.
• Copy of the IBI (Property Tax) bill
besides any other relevant document about the inheritance assets (insurance, bank statement, car documentation etc.)
How high can be the Inheritance Tax? It is not as high as most people imagine. It depends mainly on the value of the estate and the degree of relationship with the deceased, and accessorily on the previous fortune of the inheritors too. The rate is progressive and varies from 7,65 % up to a maximum of 34% applicable to an estate over 800.000 Euros approximately, though in the case of remote relatives (cousins or similar) or non-relatives at all, the final amount could be multiplied by 2 or more (up to 2,4).
The tax is calculated on each inheritance share, which means that if one person only inherits the whole of the estate, he/she will pay a higher rate than if several persons share the inheritance. Regretfully the tax free amount for next of kin (spouse, children) is quite low (not quite 16.000 Euros) and has not been updated for a number of years. Hopefully it will be increased in the near future.
A practical example:
A father leaves to his 3 children a house worth 200.000 Euros and 3.000 Euros in the bank. Each child will pay approx. 5.426 Euros inheritance tax. The total tax amount (3 shares) will be approx. 16.280 Euros, which means an average rate of 8,02% on the total value of the estate.
If the same person leaves only one child to inherit, the inheritance tax to be paid will be approx. 30.180 Euros, which means a rate of 14,87%.
There are Agreements to avoid double taxation between Spain and many countries, and according to those, Inheritance tax to be paid in Spain for assets situated on Spanish territory is liable to be deductible in the country of residence.
Non-resident Inheritance taxpayers must appoint a tax representative. It is most important to choose a serious and experienced person or legal person. Cardenas Real Estate has a large experience in dealing with inheritance matters and will provide you with a professional assistance and help, from the very first moment, providing exact information as to the documentation (including from foreign authorities) required, helping to obtain the NIE and NIF, assisting you with the signature of the Deed of Acceptance of Inheritance at a Spanish Notary public, preparing the tax returns and generally taking care of all necessary steps until the inherited assets including real estate are effectively transferred to the inheritors.
By Daniel GarcÃa Chagrin (Lawyer & Tax Advisor) at Cardenas Real Estate.
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This post was written by Daniel García ChagrinDaniel García Chagrin has written 7 posts on Cardenas Gran Canaria. |
ian Said,
July 18, 2009 @ 13:54
i cannot see how you arrive at the figures in the examples.
example 1 estate value = 203,000 less allowance of 15,956.87 = 187043,13 x tax rate 21.25% =39746,65 to pay, divided by 3 = 13248,88 How have you calculated to arrive @ 16,280 euro ?
Cardenas News Said,
July 22, 2009 @ 10:42
Hello Ian,
It is simple. You must not forget that inheritance tax is calculated on each share, not on the total value of the estate. Besides, the next of kin (mainly spouse and children) are entitled to a reduction of approx. 16.000 Euros each.
In our practical example, it means that after applying on each share the said reduction each of the 3 inheritors will be taxed for an amount of approx. 53.740 Euros. After applying the corresponding rate according the tax table (the tax rate is PROGRESSIVE) the tax amount to be paid by each of the 3 inheritors is the one quoted in our article: 5.426 Euros each, and consequently 16.280 Euros in total for the 3.
In summary: a) you seem to calculate the tax on the total value of the estate, b) apply one reduction only, and c) apply a rate of 21,25% which is not correct here.
Thanks for your comments and best regards.
Daniel GarcÃa Chagrin
Heba Said,
December 1, 2009 @ 13:33
You mentioned above that “the filing deadline for acquisitions resulting from death is 6 months from the date of death.” My question is what happens if more than 6 months elapse without filing? Is there some kind of fine or penalty? Furthermore, what if the heirs have not received their inheritance yet, does this mean they lose the right to retrieve it?
Rolande Said,
December 2, 2009 @ 12:15
Thanks for your comment.
If more than 6 months elapse without filing and paying the inheritance tax, the tax amount will be increased by 5%, 10%, 15% or 20% according to the length of the delay, plus interests in arrears. That is why it is important – if someone expects not to be able to present the papers and pay the tax in due time – to apply for a delay (within five months from the date of death), in which case only the interest for the delay will be charged.
Of course the heirs do NOT lose the right to “retrieve†their inheritance, but the amount to pay as inheritance tax will become higher the longer they wait.
Julie Said,
January 10, 2010 @ 23:01
My mother resides in Spain, and has done for many years. She is ill, and has asked me to contact the Embassy here in Australia (where I reside) to obtain and complete an N.I.E. form. She says that we, her children cannot inherit if we have not completed and registered this form.
I have contacted the Embassy and they say I do not need to do this until my mother passes. Is this true? I have no idea what an N.I.E form is.
Thanks for any help with this.
Rolande Said,
January 12, 2010 @ 12:25
Yes, indeed, you do NOT need to have a NIE (Identification Number for Foreigners) before your mother passes and you appear (personally or by proxy) before a Notary public to accept the inheritance, which is when you MUST have it. Of course it is possible to apply for it earlier, but it is not necessary. The NIE form (i.e. application for the said ID number) is to be presented before the police authority personally or by proxy, so I doubt the Embassy can help with it. In due course of time do not hesitate to contact us by E-Mail and we can help you with it, giving you all necessary instructions. Thanks for you comment and best regards.
Mariel Carter Said,
January 26, 2010 @ 13:11
Could you please tell me if it makes any difference whether you reside in Spain (or have a property there and reside without being an official resident) or in the UK to the amount of inheritance tax that you will have to pay as a non family member of the deceased. Thank you.
Rolande Said,
February 4, 2010 @ 17:56
Hi Mariel,
It does not matter so much if you reside – officially or not – in Spain, what is relevant if whether THE DECEASED was a resident in SPAIN or not.
If he/she was a non-resident, you would be subject to the general Inheritance Tax, payable to the State Tax Agency without allowances or reductions of any kind except for next of kin.
Only if both the deceased and the inheritors were resident in Spain, the rules applicable would be those set out by the respective Autonomic Governments, they can set their own rules, tax rates, or even suppress the tax altogether. But any allowances made are generally only for next of kin.
In the Canaries for instance, an important reduction of the inheritance tax has been introduced as per 1.1.2008, provided that
i) the death has taken place after January 1st, 2008
ii) the inheritors are the parents, children, spouse or partner of the deceased
iii) the deceased has had his residence in Spain, not only at the time of his/her death but during the previous 5 years, which of course must be proven.
So whether you reside in Spain or elsewhere won’t make any difference to the amount of inheritance tax you will have to pay, if as a non family member of the deceased, you can’t avail yourself of any kind of allowance or reduction.
Regards.
lewis Said,
February 22, 2010 @ 2:37
my grandfather passed away leaving his bungalow in lanzarote to me and my uncle, my mother has passed away. it is worth approx E160,000. I think he was a non resident but did spend a lot of time over there. he has owned the property for approx 20+ years and bought it for approx E40000. my uncle is a resident of uk and i am a resident in canada. Any ideas whether we will be liable under the general spanish inheritance tax or will we be liable under the new reduction inheritance tax for canaries?
regards
Rolande Said,
March 9, 2010 @ 10:57
Thanks Lewis, for your comment. It gives us an opportunity to complete the previous thread, and to correct an error in the same, which might lead to confusion. Paragraph iii) should read:
iii) the deceased has had his residence IN THE CANARY ISLANDS, not only at the time of his/her death but during the previous 5 years, (…).
To reply your question we must refer to the initial sentence of our main article. Beneficiaries that are non-resident in Spain are liable to the General Spanish Inheritance tax. Thus as regards your grandfather’s estate in the Canaries, even if you do fulfil the conditions of relationship to the deceased, if your grandfather passed away after January 1st, 2008 and it was established that he had been a resident IN THE CANARY ISLANDS, during the 5 years previous to his death, you would still be liable to the General Inheritance Tax law, since you are resident in the UK and Canada respectively, not in Spain.
Your uncle and you (as son and grandson respectively of the deceased) would each be entitled to the allowance for next of kin of almost 16.000 Euros, to be deducted from the value of each share. If the value of the estate was 160.000 Euros, you would each be taxed on approx. 64.000 Euros at the corresponding rate.
Do not hesitate to contact us for further information.
Regards
pauline robinson Said,
April 21, 2010 @ 16:46
my husband and i own a property in spain it is now worth aprox 110.000 euros we purchased it for 50.000 euros 10 years ago…we are non reidents as are our family.. we have 3 sons and 5 granchildren.at the moment our will leaves the property or 1/2 of it as we are joint owners to be shared between wife/husband and three sons, would it be more benificial to add the grandchildren as well.. and can you tell me aprox how much inheritance tax would have to be paid as we are not wealthy people and have very little money in the bank..
Rolande Said,
April 23, 2010 @ 13:30
Hello Pauline,
It is NOT necessary to include the grandchildren in your will, because with the present allowance of 15.956,87 Euros for each of the 4 inheritors (husband/wife + 3 children), the total allowance is more than the value of ½ of the property, so NO inheritance tax at all would have to be paid. You would only have to pay some inheritance tax (very little) if the value of the property would increase in the meantime and reach over 124.000 Euros approximately.
Including the grandchildren would make things only more complicated (many people having to agree in case of a sale, more expenses for proxies, NIE numbers, etc) so our recommendation would be to leave things as they are.
Regards,
John Said,
May 9, 2010 @ 20:25
Hi,
My Civil partner died last year and we have a holiday apartment in Gran Canaria in his name our main resident is in the UK and there are no other assets. He made a Spanish will with me as sole beneficiary do I have the same rights as a wife and should I be paying Inheritance tax
Rolande Said,
May 18, 2010 @ 14:57
Hello John,
Sorry for the late reply, the matter was not simple, and we had to check.
Regretfully, only some Regional Governments have recognised the situation of civil partners and given them the same rights as a wife/husband for inheritance tax. The deceased being a non resident as well as yourself, the competent Tax authority is the Special Branch of the Tax Authority in Madrid, i.e. depending on the State Tax Agency (AEAT), and they do NOT recognise civil partners as spouses. Therefore you will have to pay Inheritance Tax as if you were a non relative of the deceased. It means that you are not entitled to an allowance and moreover, the tax amount resulting from the application of the tax table to the inheritance value will be multiplied by 2.
Do not hesitate to contact us for further questions or to know exactly the amount you are liable to pay.
Tony Smith Said,
July 1, 2010 @ 16:01
Hi
We own a property in Spain worth about 230,000 Euros. In order to avoid a high Inheritance Tax, when we brought the property , we named only my wife on the deeds for the property and in her Spanish will, we named our daughter now aged 8 as the inheritor of her estate and me as a substitute inheritor (should anything happen to our daughter God forbid) This was done on the assumption that I die first. We have now thought of another scenario of my wife dying first. What would be the inheritance tax implications if this were to happen and would it reduce the inheritance tax implication if both me and my daughter were named as the inheritors of her estate in my wife’s Spanish will.
Tracey Swift Said,
July 4, 2010 @ 17:26
Hi
My father and step mother sold up in the UK and moved to Spain in 2004 and have spanish residence. My step mother died last year suddenly and now my dad has a terminal illness and I am the sole beneficiary of the estate. I live in the UK. I understand that the IHT has to be paid within 6 months – before the estate can be released. My dads property is worth about 200,000 euros and I believe he has approx 100,000 in bank accounts as well as UK premium bonds. How much IHT approx would I be liable to pay and what happens if you have not got the funds to pay for this before the assets are transferred.
Daniel GarcÃa Chagrin Said,
July 7, 2010 @ 17:44
Hi Toni,
Yes, this solution would reduce the inheritance tax. Being a progressive tax, calculated on each share, the rate is lower if more than one inheritance share are involved, i.e. the tax amount will be lower for 2 shares of 115.000 Euros each than for one share of 230.000 Euros.
We feel we must point out that if you want to sell the property in the
future, and your daughter is still under age, the Spanish authorities will not accept the sale without permission of the Court (Spanish Court or Court of your country of residence).
Such a permission is a way to protect the wealth of a person under age
according to Spanish law, but coincident also the law in many European
countries.
Do not hesitate to contact us for further questions.
Regards
Daniel GarcÃa Chagrin Said,
July 7, 2010 @ 17:50
Hello Tracey,
the inheritance tax must be paid within 6 months after from the decease but an extension of another 6 months can be applied for within 5 months from the decease, so the term of six months can be extended for another 6 months.
Being a non resident in Spain, the inheritance tax would amount roughly to approx. 50.000 Euros for the property valued in 200.000 Euros and 100,000 in bank accounts as well as UK premium bonds.
However it would be interesting to study (after comparing the inheritance tax to be paid in UK and Spain for the 100,000 in bank accounts) if it would be more convenient to pay inheritance tax in UK for the 100,000 Euros in bank accounts as well as UK premium bonds, if they are situated in UK, rather than to declare them with the inheritance in Spain.
The Tax Office offers the possibility of splitting the payment of the
inheritance tax in different payments. An application must be filed and expressly accepted, with the obligation in most cases of guaranteeing the payments (i.e. with a bank guarantee).
Do not hesitate to contact us for further questions.
Regards
Michael Lenihan Said,
November 13, 2010 @ 9:03
Daniel
I purchased a property in Spain in 2005 for 260k euro jointly with my wife.I have 4 adult children who will inherit this property equally on the demise of myself and my wife. However,either myself or my wife will die first and a half share will be inherited by the surviving spouse.How can I minimise the inheritance taxes payable by the surviving spouse ? Also in the current climate the value has dropped to approx 190k.
Michael
Melanie Dry Said,
November 17, 2010 @ 12:23
My husband and I live in Andalucia. We have no children in common but have each got children from previous marriages. We own two properties. We are both resident in Spain and have been for over ten years. My husband is empadronada in one and I in the other. We are writng our Spanish wills and have been advised that if we each leave our property only to our direct descendants,(he to his son, I to my two daughters)they will each be respectively entitled to €175000 tax free before ISD and have written wills accordingly. Since none of the children is resident in Spain can you tell me if this is right? Or would they be taxed by Madrid with just a €16000 allowance? It is almost impossible to get consistent and reliable advice on this.
fabiola Said,
November 22, 2010 @ 3:14
what is the current death tax rate for a Spanish citizen but non resident of Spain, who will inherit property in Spain?
Also, are gifts from parents to children subject to tax in Spain?
Thanks
Daniel GarcÃa Chagrin Said,
November 25, 2010 @ 10:52
Hello Michael,
A possibility would be that the spouses are appointed respectively as heirs of the property’s usufruct (life benefit) instead of the full ownership, and then most of the tax charge would be transferred to your descendants directly, minimizing the Inheritance Tax to be paid by the surviving spouse.
The surviving spouse would be guaranteed the right of use and enjoyment over the property as long as she/he lives, including receiving rentals, etc. A possible inconvenient is that the survivor will not be entitled to sell without the consent of the final inheritors, i.e. the children.
Tax residents in Spain will find useful to know that in many regions of Spain, the Inheritance tax for Residents has been reduced. Depending on the region, a reduction of 95 % up to 99 % can be applied to the Inheritance Tax payable for the family’s main residence.
So if you have your tax residence in Spain, depending on the place of residence, Inheritance Tax for the main residence could be so much reduced that it would not be necessary to minimize as above described the Inheritance Tax payable by the surviving spouse.
Regards
Daniel
Daniel GarcÃa Chagrin Said,
November 25, 2010 @ 10:53
Hello Fabiola,
There is no fixed rate, Inheritance tax is a progressive tax and the rate vary from 7,65 % to 34 %, depending on the value of the inherited property, the number of inheritors, their relationship with the deceased and some other personal factor.
Gifts from parents to children are subject to Gift Tax in Spain (same rates as Inheritance tax), though in most regions of Spain, there are interesting allowances, which can even reduce most of the tax, PROVIDED however that both the giver AND the donee can prove effective residency in that region.
Regards,
Daniel GarcÃa Chagrin Said,
December 1, 2010 @ 15:43
Dear Melanie,
Some tax benefits were recently introduced in the Canaries as well. Though quite a few advisers and lawyers applied the same to non residents (as I suppose are doing some advisers in Andalusia) we have been reluctant to apply those to non residents.
The question lies with the distribution of competences between regional tax offices and the main tax office in Spain. In order to resolve any doubt, we need to look into Law 21/2001, art. 24.2. of distribution of competences, which – making short some technical details – concludes that it will be understood that the regional tax office is competent and the particular regional tax rules will be applied WHEN THE TAXABLE PERSON (THE INHERITOR IN THIS CASE) IS RESIDENT IN SPAIN.
I am afraid that as matters now stand, your descendants would be taxed by Madrid with just 15.956,87 Euros allowance.
Kindest regards
Daniel
stan Said,
January 16, 2011 @ 11:22
my wife &I own property in both spain & england, currently non-resident re spain.both are valued at around 200k euros, plus we have premium bonds etc.
we understand the non resident scenario,and also generally should we decide to become spanish tax resident.
in the latter case,neither of us would,however,be likely to wish to remain in spain for 10 years in the event of the death of the other.
as spanish taxes are world-wide for residents, what would the position be for the value of the uk property & bonds etc , or if we sold up the uk property & invested the proceeds would it matter if those were deposited in either country ?
thanks
Jean Kerr Said,
January 22, 2011 @ 16:03
Excellent website with good and useful information.
When assessing my property value for Spanish succession tax as a non resident, which value is used? Is it the valor catastral (133,000 euro) or market value (approx 650,000?) As you will note, there is quite a difference between the two and I have read conflicting reports.
Many thanks
Daniel GarcÃa Chagrin Said,
February 18, 2011 @ 14:33
Dear Jean Kerr,
Thanks for kind remarks. The value to be declared on the acceptance of inheritance is in any case the current market value; of course it is not always easy to establish exactly the market value and it is subject to interpretations and discussion, therefore the Tax Office is always entitled to reassess the declared value according to a valuation given by an expert. There are possibilities to appeal against the reassessment (not always successful).
The valor cadastral has long ceased to be a reference for any tax except for the municipal Land Tax/Urbana Tax and to establish the locative value for the Income Tax. Therefore it is far from advisable to use it for the inheritance tax, since it is in most cases far lower than the market value, and therefore it is more than likely that such a value will NOT be accepted by the Tax Office and be subject to reassessment.
Best regards
Daniel GarcÃa
Daniel GarcÃa Chagrin Said,
February 18, 2011 @ 14:34
Dear Stan,
In case you become a tax resident in Spain you would be obliged to declare the world-wide possessions on the inheritance in Spain, also the value of the UK property and bonds etc, even if you sell them and invest the proceeds, all the world-wide possessions, no matter in which country those were deposited.
It may interest you to know that if both of you became residents in the Canary Islands, a reduction of 99,9 % of the tax amount has been established as from 2008.
If the inheritors are resident in the canaries (with a continued residence during the previous 5 years) a reduction of 99,9 % will be applied on the amount of the tax corresponding to the whole estate. Which means that the reduction of 95% for the “vivienda habitualâ€, i.e. main domicile, with the condition for the surviving spouse to keep it as main domicile during 10 years, no longer makes sense since the final global amount of the tax will be reduced anyway in 99,9 %, without being necessary to keep the property for 10 years (just to have had a previous continued residence in the Canaries the last 5 years).
It is important to know that the inheritors must be residents in the Canaries to get this reduction, so that in the case of simultaneous decease of both spouses, the said reduction could not be applied to the children for example, if they are non-resident.
One must bear in mind that those inheritance benefits were introduced in the Canaries in 2008, together with similar benefits in other regions in Spain. But it could be that such benefits are again modified or suppressed in the coming years (bearing in mind that theoretically a continued residence of last 5 years is required from the inheritor).
Best regards
Daniel
stan Said,
February 22, 2011 @ 9:00
thanks for that.
have heard recently that the required 10 year continued residence by the surviving resident is nullified if the survivor sells up & then uses the proceeds to buy a property anywhere in the EU ( having already been resident for 3 years prior to the spouses death )
stan
Tracey Swift Said,
March 9, 2011 @ 20:16
Hello
Thank you for your earlier advice in July 2010. My father passed away in November 2010 and the inheritance tax of 18,500 euros has been paid which was less than we were expecting. I think this is because the value of the property is calculated by using the rates which have a rebuild value and not the commercial value. We hired a translator to deal with the notary and gestor to sort the taxes which I would recommend to anyone who has not got fluent Spanish.
Now that the inheritance tax has been paid, are the deeds automatically transferred to my name? Also do I need another document to state that these are paid so that I can contact the bank accounts (in Spain)?
Your advice is greatly appreciated.
Many thanks
Daniel GarcÃa Chagrin Said,
March 22, 2011 @ 13:53
Hello Tracey,
We are glad that our advice was helpful. As to the lower amount paid, we must point out that the Tax Office is entitled to reassess the declared value – it ought to be the commercial value – and to claim the tax difference.
As to the deed, once the inheritance tax is paid, it must be lodged with the corresponding land registry for the transfer and registration of the property in your name. It is the same thing with the bank, so that you may dispose of the monies left by the deceased. Since a Notary and a gestor, plus a translator were engaged, we assume that someone will have taken care of those steps for you. Nothing happens automatically.
Regards
Daniel GarcÃa Chagrin Said,
March 22, 2011 @ 13:53
Hello Stan,
We are not aware of such a regulation at least as far as the Canaries are concerned (as you may know, each region may set up its own regulations for Inheritance Tax). We rather tend to believe that there is a confusion with another tax (Income Tax, namely Capital Gain Tax, or even Corporate Tax).
It might be interesting to know the exact source of your information.
Regards,
Jean Lamont Said,
March 30, 2011 @ 16:29
Hello,
I presently live in the Alicante region and my husband and I are at present residents for 5years. Our three sons and both of us are on the deeds.ie we each own a fifth of the property Our sons are non residents. Can you tell me what we each would have to pay on inheritance. Also how would that figure change if my husband and I became non residents,
Your advice would be greatly appreciated.
Daniel GarcÃa Chagrin Said,
April 4, 2011 @ 13:18
Hello Mrs Lamont
Without knowing approximately the current value of the property, it is obviously impossible to say how much the inheritance tax would be. In any case it would not make any difference if your husband and you became non resident, since your sons are non resident. To benefit from any tax advantage for residents, both the deceased AND the inheritors must reside in Spain.
Regards,
Daniel
Jean Lamont Said,
April 4, 2011 @ 19:01
Sorry about not enclosing the current price of the property, it is 140,000Euros. What then would the inheretence tax be if all five of us were non resident.
Daniel García Chagrin Said,
May 11, 2011 @ 11:23
Hello Jean,
Sorry for this late reply, due to the large amount of work
Assuming that the share of each would be inherited by the remaining 4, no inheritance tax will be payable at all on the death of one of you, since each would inherit one fourth of one fifth share, and the taxable value would be negative after deducting the allowance next of kin are entitled to.
However, if your husband and you have a Will in favour of each other, according to which the surviving spouse would inherit alone – not sharing with the sons – the other parent’s share, then the survivor would have to pay some inheritance tax, approx,. 1.030 Euros.
In such case your 3 sons would later inherit 2/5 of the property and would then have to pay approx. 260 Euros each, that is, 780 Euros together.
All that provided always that the value given of 140.000 Euros remains the same and is a value acceptable for the Tax authority.
Regards,
Daniel
Lorraine Thompson Said,
May 14, 2011 @ 11:38
Hello, Please can you advise. My Mother died in Tenerife in February this year. She owned her own property and had lived in Tenerife for almost 10 years. I live in England and my Mother has left the property to me. It is worth around 70,000 euros I think, how much inheritance tax will I have to pay?
Regards
Lorraine
Daniel García Chagrin Said,
May 17, 2011 @ 13:09
Hello Lorraine,
If the property is worth 70,000 euros and you inherit it alone, the inheritance tax will amount to 5.735 Euros approximately. Remember that the tax is payable within 6 months of the date of death.
Do not forget either that the tax authority is entitled to reassess the value of the property and claim an additional tax if they find the declared value too low.
Regards,
Daniel
Karen Hall Said,
June 3, 2011 @ 21:12
Hello, My father died last June and had been living in Spain for the last 5 years – I have a brother and sister. We were in contact with him but not close contact as he had another family where he married his partner of 35 years 2 years ago but did not leave a will. I have a half brother who is 36 who I have never met. I was contact last weekend out of the blue from my half brother. He was saying that we would incur inheritance tax if we did not waive our rights. The property that was purchased in Spain 5 years ago was very basic with few amenities and was purchased for £20,000 – I would suspect that the increase in price was not too high. He said he would take on all the taxes if we waive our rights. If the property is worth say maximum of £50,000 what sort of inheritance tax would we pay? There are 4 children – I believe there would be no tax payable but would just like to check. What is the advantage to us of waiving our rights. We are not too worried about getting any inheritance from our father but don’t want to be rushed into making a decision. Any advice would be great.
Thanks
Karen
Karen Said,
June 5, 2011 @ 13:44
Hi,
I sent the previous message and just wanted to ask another question. I have now heard that the property was bought for approx £100,000 although we are not sure if it was purchased with any Deeds. Does this make a difference? Also my husbands wife I assume receives the property until she either sells or her death, does she have to pay inheritance tax also? If the children are left with the tax are they able to insist that the property is sold to enable them to pay the taxes? There are 4 children.
Thanks
Karen
Jean Lamont Said,
June 12, 2011 @ 21:56
Thank you ever so much for your advice. Your site is superb for anyone who doesn;t understand the Spanish Inheritance system.
george peters Said,
June 14, 2011 @ 18:15
I own a property in the Balearics worth 600,000 euros. It is presently 100% mortgaged. It is the home of my parents who have the right to live there until their deaths.
If I die then my wife will inherit the property. What inheritance taxes would be due as she cannot sell the property until my parents die or choose to leave.
regards, George
Maria Tervit Boyce Said,
October 11, 2011 @ 20:11
Oct. ll.
I have a property in Andalucia which I would like to leave to a niece on my late husband’s side…therefore she does not have consanguinity to me. I am now no longer resident in Spain, but my niece is Catalana by birth and lives in Barcelona. Is this a feasible way of
doing things or would the taxes be crippling for her?
I was not too sure what URI is.
Muchisimas gracias
Maria
Maria Tervit Boyce Said,
October 11, 2011 @ 20:15
I did not say what the price of the above property is….difficult to say.
They were selling for 40,000,000 Ptas but I possibly would be lucky if it was worth just over half. The rateable value is 140,000 euros
Sherry Thomas Said,
November 28, 2011 @ 23:34
Following the death of my mother who lived in the Canaries for past 35 years I need to complete a tax form 652 and BOE 88. (I have already obtained a NIE). How do I get hold of a copy of these forms and can I get them in English rather than in Spanish? There is no property ionvoved – just a bank account and a car. What is my tax rate likely to be? (The estate is shared with my sister who is resident in the Canaries.)