Although our law firm in Marbella does not wish to give our readers false expectations, we pretend to solve in the below mentioned text doubts that Inheritance Tax in Andalusia may entail.
However, its a pleasure to explain in the following lines a general summary when it comes to Inheritance Tax in the Autonomous Community of Andalusia (Spain).
Introduction: Who pays inheritance tax in Andalusia, Spain?
Inheritance Tax regulations and rules in Andalusia
Inheritance and Gift Tax in Spain is a state tax ceded to the autonomous communities. Thus, the state regulation is Law 29/1987 of 18 December 1987 on Inheritance and Gift Tax, developed by Royal Decree 1629/1991 of 8 November 1991, which approves the Inheritance and Gift Tax Regulations.
Legislative Decree 1/2018, of 19 June, approving the Consolidated Text of the provisions issued by the Autonomous Community of Andalusia on assigned taxes, establishes the rules on assigned taxes, including Inheritance and Gift Tax.
This Legislative Decree 1/2018, undergoes an important modification after the approval of Legislative Decree 1/2019, of 29 April, which introduces a 99% rebate on the tax liability when the purchasers are spouses, descendants and ascendants.
Who has to pay Inheritance Tax in Andalusia, Spain?
Inheritance tax in Spain is a tax on the transfer of property and rights between individuals free of charge and mortis causa, i.e. on the death of the testator.
Therefore, those who are obliged to pay Inheritance Tax (and, if applicable, to pay it) are those who are entitled to some property and/or rights from the inheritance, which we legally call “successors in title” and who are mainly expressed as heirs or legatees.
Heirs are those who succeed universally (either designated by law or by testamentary disposition) to all assets and rights, but also to the obligations of the deceased at the date of death.
On the other hand, legatees are those who succeed to a particular estate, i.e. they receive the specific assets previously designated by the testator before his death, the testator’s will always established by will. Legatees are not liable for the debts and burdens of the inheritance, unless the testator had divided his entire inheritance into legacies.
In the next entries of our blog, we are going to look at a series of legal concepts closely related to inheritance law and inheritance tax in Andalucía, Spain. We will analyse concepts such as habitual residence, heirs, legatees, acceptance of inheritance, benefit of inventory, household goods, taxable base, estate, etc.
In the following blog posts, we will develop the following summary outline:
From Welex, we recommend you to hire the services of a lawyer specialized in Inheritance Tax in Spain to know all the details of this tax as well as all the procedures derived from an inheritance in Spain. Do not hesitate to contact us now.
Not infrequently, the inheritance and gift tax provokes confusion, since it is a very unpopular tax and generates doubts. For example, the amount that has to be paid for this tax is an area of confusion, because it is subject to many factors.
I am a legitimate heir or I have been named as heir in a will, but am I obliged to accept an inheritance in Spain?
In general terms, Inheritance Tax in Spain is payable in the Autonomous Community where the deceased had his or her habitual residence.
What do we mean by habitual residence for Inheritance Tax in Spain purposes?