As a property owner on the Costa del Sol, you may be aware that the inheritance taxes in Spain are quite different from the UK. It’s a big topic and we advise that property owners seek financial advice for how to best manage the inheritance taxes here in Spain. Knowledge is power and if you know where you can be in for more taxation you can take steps to minimise it.
A great change for anyone owning property in Andalucia, is that the Inheritance Tax laws for non-residents are changing to be in line with their local area, which means that in Andalucia, the surviving spouse will get a 99.9% discount on Inheritance Tax on their primary residence. This is a big change, as before there were no tax breaks at all for the surviving spouse, beware though that if you are not married or legally recognised as a couple you will not get these same benefits.
To give you a little introduction to Spanish inheritance tax we have pulled out a few key points here –
- The individual recipient is taxed rather than the ‘estate’ of the deceased.
- If the couple are living together but are unmarried, the tax due is even higher and could be at least doubled.
- Ex-pats who are resident in Spain are liable to pay Spanish Inheritance tax regardless of the country in which their ‘estate’ is situated.
- Non-residents are liable to pay Inheritance Tax in Spain only on assets which are physically located in Spain.
- If you own a property and it has been your primary residence for more than 3 years the recipient of the inheritance may qualify for a tax free allowance of €122,136.
At HomeCareontheWeb, we have contacts with financial advisors and legal professional who can help you if you’re concerned about this issue, please contact us and we will give you some recommendations. To educate yourself on inheritance tax in Spain read this interesting article – http://www.spanishpropertyinsight.com/tax-and-pensions/spanish-succession-tax/