Inheritance tax reductions

Information and questions about the Law in Spain and Andalucia.
Paddy Pumpkin
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Inheritance tax reductions

Postby Paddy Pumpkin » Wed Jan 30, 2019 4:04 pm

Correct me if I am wrong, but I haven't seen this in any English language publications, hence I thought some non-Spanish speakers would be interested in this

https://www.libremercado.com/2019-01-29 ... 276632153/

In short the new Andalucian government have set the wheels in motion to drastically reduce inheritance tax between spouses, children and parents. The final declaration is still some way off, but they have taken steps to begin...hopefully they finish it!

The rates will be the lowest in Spain and means that many people who avoided becoming tax resident here will now come to Andalucia. It will also stop many wealthy leaving Andalucia for Madrid. That will mean an increase in income tax and VAT receipts for the Andalucian government.

Andalucia is the most populous region and had inheritance tax rates many times that of Madrid...but has inheritance tax receipts only a small percentage of those in Madrid. In short the rates shoot Andalucia in the foot, but optically look great for a government who want to be seen to be taxing the rich.

El Cid
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Re: Inheritance tax reductions

Postby El Cid » Wed Jan 30, 2019 5:22 pm

They are talking about abolishing IHT completely but it won’t affect most of us as they have already increased the threshold to €1000000.

Sid

Paddy Pumpkin
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Re: Inheritance tax reductions

Postby Paddy Pumpkin » Wed Jan 30, 2019 5:27 pm

Are they talking about abolishing it completely completely...as in even between people who are not related? The 1 million is great but it still only from parents/children and spouses. As it stands the allowances between non related people are non existent.

El Cid
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Location: La Herradura, Costa Tropical, Granada

Re: Inheritance tax reductions

Postby El Cid » Wed Jan 30, 2019 7:00 pm

No, it will only apply to direct family members. They are not interested in the rights of non family members.

Sid

Gasman
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Re: Inheritance tax reductions

Postby Gasman » Fri Feb 01, 2019 11:19 am

What upsets me greatly is that no account is taken of people who do not have direct relatives - ie parents dead, no children ... It should be then allowed that NEAREST relatives could be re-categorized for such people.

Paddy Pumpkin
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Location: Madrid

Re: Inheritance tax reductions

Postby Paddy Pumpkin » Fri Feb 01, 2019 11:53 am

In Ireland after gay marriage was introduced a guy married his best friend so that they could avoid inheritance tax! There was no romantic relationship they were just friends and the older guy decided his best friend was who he wanted to have his money.


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