Inheritance tax


Although your National Law is applicable for the distribution of the Spanish assets, from a Fiscal/Tax point of view, the inheritors will be liable to Spanish Inheritance Tax governed as per the Inheritance tax law in Spain. In general terms the Inheritance Tax in Spain would be rated on assets located in Spain only (properties, bank accounts, vehicles, insurance policies, etc) if the heir is non fiscal residents in Spain. For Fiscal residents world wide assets (not only those located in Spain) should be declared in Spain. Additional study on the corresponding bilateral agreement between Spain and the other country should be carried out in order to ascertain this point in your specific case.

ImpressionThe Inheritance tax in Spain has to be settled within the 6 following months after the decease.

This Spanish tax is payable by the inheritors and not by the inheritance (estate). This means that the tax should be paid before the inheritors can deal with the assets of the inheritance.

Spanish Inheritance Tax reductions. The Spanish inheritance tax establishes a minimum exemption over the tax to be paid, depending of the relationship between the inheritors and the deceased:

Group I: Descendants, adopted children under 21 years old: General exemption of 15.956,87 euros, plus € 3,990.72 per the number of years to arrive at age 21, per a maximum exemption of 47.858,59.

Group II: Descendants, adopted children over 21, parents, adopted parents: exemption 15.956,87 euros.

Group III: Collateral of 2º and 3º grade: brothers-sisters, nephews-nieces, aunts-uncles:  exemption 7.993,46 euros.

Group IV:  Those not mentioned in group 1, 2, 3 above, friends, etc: No exemption.

Once the above tax exemptions have been deducted, the Inheritance Tax will be applied on the remainder of the inheritance in Spain, as per a general scale of Spanish Inheritance Tax.

Base up to  Euros Tax quote
Rest of base Euros Tax rate (%)
0,00 7.993,46 7,65
7.993,46 611,50 7.987,45 8,50
15.980,91 1.290,43 7.987,45 9,35
23.968,36 2.037,26 7.987,45 10,20
31.955,81 2.851,98 7.987,45 11,05
39.943,26 3.734,59 7.987,46 11,90
47.930,72 4.685,10 7.987,45 12,75
55.918,17 5.703,50 7.987,45 13,60
63.905,62 6.789,79 7.987,45 14,45
71.893,07 7.943,98 7.987,45 15,30
79.880,52 9.166,06 39.877,15 16,15
119.757,67 15.606,22 39.877,16 18,70
159.634,83 23.063,25 79.754,30 21,25
239.389,13 40.011,04 159.388,41 25,50
398.777,54 80.655,08 398.777,54 29,75
797.555,08 199.291,40 en adelante 34,00

The above mentioned scale would be applicable for non tax residents in Spain and may vary in the event that the heirs are fiscal resident in Spain. In this case it would is relevant to ascertain in which Spanish region the heir is tax resident as the scale may increase, additional deductions of the final Inheritance tax bill may arise and would therefore suggest to  approach Arcos & Lamers Asociados directly in order to apply for a first free legal-tax consultation. Your Inheritance tax experts in Marbella, Málaga, Spain.

In the addition to the above, the Spanish Inheritance tax bill may vary depending on the previous pre-existing wealth of the heir/s and the relation ship between heir/s and deceased.

The information above mentioned and appearing in this whole web site is provided for informative purposes only, not being legally binding.