Frequently asked questions about the Inheritance Tax in Spain

Yes, in comparison with the rest of the countries around us, the tax burden on inheritances in Spain is higher. The amount to be paid is influenced by many factors: the relationship between the deceased and the heir (the closer: parents and children, grandchildren and grandparents, etc, the less you will pay), the amount and value of the assets to be inherited, the regulations applicable to the inheritance (central government regulations, autonomous community, etc).

What agency is in charge of processing Inheritance Tax in each case?

In Spain, the Inheritance Tax is a ‘State Tax’, that the government transfers to the Autonomous Communities. Each region has its own regulations. Depending on the circumstances of the deceased and the heirs (whether they are residents or non­residents) the regulations and applicable jurisdiction is different.

What is the deadline for paying Inheritance Tax in Spain?

The deadline for paying the Inheritance Tax in Spain is six months from the date of death. However, during the first five months, it is possible to request an extension of another six months (one year total). In all cases (ie whether an extension has been requested or not) from the sixth month onwards, late payment interest will be payable.

If there is a legal dispute between the heirs, what happens to the deadline for paying the tax?

If an inheritance ends up in Court, it is necessary to notify the competent Tax Authority depending on the Region. Once notified, the deadline for payment will be suspended until the end of the judicial process.

What happens when the Inheritance Tax is paid after the deadline?

If payment is made after the deadline (after the sixth month, if no extension has been requested; after one year, if an extension has been requested), in addition to the interest for late payment, a series of surcharges established in the Tax Law will be due.

If the amount to be paid is very high, can I request an instalment payment?

Yes. However, the conditions will vary depending on the Region. In the Valencian Region, under certain circumstances, you can request a fiveyear payment plan.

Is it true that debts can be deducted from the inheritance?

Yes, from the assets to be inherited (a house, a bank account, a car, etc) it is necessary to subtract any debts that the deceased may have had. For instance, a debt with the tax authorities. Burial and funeral expenses can also be deducted.

Why do some areas of Spain pay more inheritance tax than others?

This happens because each Region of Spain (Autonomous Communities) can set its own deductions and allowances. For this reason, in much cheaper to inherit under the regulation of regions like Andalucia or Cantabria, rather than the Canary Islands or Asturias.

How much tax is paid approximately in the Valencian Region?

The Region of Valencia applies a progressive rate, ranging from 7.65 per cent to 34 per cent. For instance, if you inherit assets worth €150,000, the taxable amount will be approximately €22,000. Although to this amount you could still apply allowances related to kindship, disability, etc.

What are the most important deductions in the Valencian Region?

In the Valencian Region, among others, there is a 95 per cent deduction for the main residence (with a limit of €150,000), the deduction for kinship (which allows that, for example, from parents to children, no deduction is paid for the first €100,000) and others that we have already analysed in detail previously.

A NEW video of a meeting between the Spanish King and Queen and the Iranian Ambassador to Spain shows the usual diplomatic greetings between the parties, except for one thing. The Iranian Ambassador, Hassan Ghashghavi snubbed Queen Letizia, failing to shake her hand.

The video of the meeting took place on Tuesday, January 24, although many commentators say the scene looks straight from the 1950s or earlier. In it, Ghashghavi reaches his hand out to King Felipe, who shakes it, then briefly nods at Queen Letizia before moving off camera.

While the now ­ viral