LawTalk
Inheritance tax reductions –
Andalucía
This year 2018 brings good news for family members who
inherit property and assets in Andalucía. The regional tax has
been reduced, with spouses, children, parents and those
registered as partners - parejas de hecho - receiving an
increased tax allowance of 1,000,000€ per beneficiary.
discriminated against EU nationals. Once Britain is outside the
European Union it is possible British residents will be treated
as citizens of countries outside the EU, with a return to the
high pre-2015 inheritance tax.
There is a possibility that the principle of reciprocity might be
applied to some taxes post Brexit. For example, the fact that
spouses of Spanish residents would not be charged inheritance
tax in the UK could allow for some negotiation on inheritance
tax provisions post Brexit. The important thing is to obtain
information now on what inheritance tax could become
payable, and what measures might need to be taken post Brexit
if you are a UK citizen.
Spanish inheritance tax is a donee tax falling on the person
who receives. This means that if you and your spouse are joint
owners of a property whose tax value is just under 2,000,000€
and you receive one half, you would not pay succession tax in
Spain.
Unlike previous deductions, this new allowance applies even if
the beneficiary receives more than the amount of the
allowance. It acts therefore in the same way as the nil rate band
in the UK. So if you inherit 1,100,000€, you deduct
1,000,000€ and only pay tax on the 100,000€.
Individual circumstances vary so do please contact us for
further information or a consultation on 952 527 014 or email
[email protected]. We are also holding an English wills day
in Nerja on 21st February – see our advert on page 27 of this
magazine.
De Cotta Law (De Cotta McKenna y Santafé)
Mijas-Costa / Calahonda – Coín – Nerja – Tenerife
Nerja Office: - Calle Diputación 11, 29780 Nerja
Tel: +34 952 527 014
Fax: +34 952 523 428
www.decottalaw.com
E-mail: [email protected]
At present this applies to all European Union residents which
currently includes the UK. It is going to be important to know
if these allowances will remain post Brexit. Many lawyers and
accountants fear this will not be the case.
This is because the way in which this tax was payable before
2015 was challenged in the European court and a decision was
made that by charging higher rates to non-residents in Spain it
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