The rules and rates for spanish inheritance tax
The regulations and fees related to the spanish inheritance tax may vary depending on the relationship between the donor and the beneficiary. In this regard, it should be noted that couples who are not married and stepchildren pay more taxes than spouses and natural children.
What you should know about this tax
The spanish inheritance tax (SST) as well as tax rates, may vary depending on the spanish region where we are, but only if both the beneficiary and the deceased have their habitual residence in the region, having lived in the country for five years.
The national regulations will be applied if the deceased or the beneficiaries did not live in Spain. In addition, both the assignments and the tax rates will vary depending on the group in which the beneficiary is located:
GROUP 1: Persons under 21 years of age, adopted and natural
GROUP 2: Natural persons and adopted persons over 21 years of age, grandchildren, parents, grandparents, spouses or unmarried couples who are registered as a de facto couple (in some regions)
GROUP 3: In-laws and their ascendants or descendants, stepchildren, cousins, nephews and nieces, brothers and sisters.
GROUP 4: All others, which include unmarried partners, unless they are registered as a domestic partnership in some regions.
Under State regulations, the surviving spouse will have a tax allowance of € 15,956 although there is no automatic allowance for unmarried couples. Unmarried couples living together can be treated as married couples for legal purposes in some Spanish regions, but only if they are registered as a domestic partnership.
A natural or adopted child will have a tax allowance of € 15,956, while a stepchild will only have € 7,993. A natural or adopted child who is less than 21 years old, may have an additional tax deduction of € 3,990 for each year that is less than 21 years, up to €47,858 per child.
Tax rates and obligations
It should be noted that the tax obligation will be multiplied depending on the groups:
GROUP 1: and 2: x 1.0000
GROUP 3: x 1.5882
GROUP 4: x 2.0000
A couple who is not married and who is not registered as a couple or where the tax does not affect, will have to pay twice as much SST as a married couple. Stepchildren will pay more than 1.5 times what a natural or adopted child would pay. Also, the rates can be multiplied by the existing wealth of the beneficiary.
This tax is not easy to understand since it has many aspects that must be kept in mind. Therefore, it is recommended to have the help of specialized professionals to receive the best advice. Need personalised advice for spanish inheritance tax? Contact us!