Life and Inheritance Tax
Turner Insurance News • Sept 28, 2017
All though the rules and regulations on this can vary from year to year, also to make matters more complicated they vary from province to province in Spain, there is a national inheritance tax law stating 35% of all inheritance is taxable in Spain, unlike in the UK where the actual estate itself is taxed, as long as it is over a certain amount or tax free if it is under a certain amount. In Spain it is the actual beneficiary of the inheritance that pays inheritance tax.
Furthermore on top of this national inheritance tax laws the regional laws also apply, for example, in the Comunidad Valenciana (Castellon, Valencia and Alicante provinces) there is a tax exemption for inheritance tax for inheritance up to 100.000€, this is for the total value of the cash and assets received.
In Spain there are also strict rules concerning who you can leave your inheritance too. You cannot freely leave it all to your spouse if you have children. As this really is a complicated subject, we recommend you speak to a financial planning adviser or Gestor to assist you with this.