Accepting an inheritance or a donation in Spain implies paying a tax provided that the object of the inheritance or donation is located in our country, or the taxpayer has his habitual residence in Spain.
It is important to determine whether the competence and applicable regulation for settling Inheritance and Donation Tax will be those of the Autonomous Community or those of the State depending on whether the testator/giver and the taxpayer are resident or not in Spain and where the assets are located. It should also be noted that the Inheritance and Donation Tax Law allows the option of opting for the Autonomous Community’s own regulations when certain conditions are met.
The determination and choice of competence and the applicable regulation is very important, since inheritance and donation tax is a tax ceded to the Autonomous Communities, which can establish tax rebates, thus marking a notable difference with the provisions of state regulations.
The good news is that, if the tax is settled in the autonomous community of Andalusia, the taxpayer can benefit from autonomous reductions and improvements that respond to reasons such as kinship, pre-existing wealth of the taxpayer or the acquisition of assets of a certain nature such as the main residence.
In the case of inheritance, there are tax rebates that allow taxpayers who are descendants, spouses or ascendants of the deceased, where the first million is exempt from taxation.
This is why, depending on the circumstances of the parties involved and where the assets involved in the inheritance or donation are located, there are certain tax benefits that can be applied if the tax is settled in Andalusia.
At Franke & de la Fuente abogados we are experts in international inheritances and their subsequent liquidation. Please do not hesitate to contact us so that you can take advantage of the tax benefits correctly and obtain the right legal advice.
