Inheritance Gift Tax

Information and questions about the Law in Spain and Andalucia.
pensure1988
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Inheritance Gift Tax

Postby pensure1988 » Tue May 24, 2022 12:00 pm

A friend of mine has left a monetary legacy from an Aunt in Australasia. What she wants to know as a Tax Resident in Spain is:-

1. If the Legacy was paid in 2022, when does she have to declare it. Is there a time limit as her Aunt was Deceased in feb 2021
2. i know she gets a deduction of euros 9,000 as a deduction for being in category 3
3. if the Legacy is left in UK is still it taxable.
4. If some of the Inheritable is spent before declaring it, does she only declare the balance
5. Tax rates for Inheritance in Spain are quite high, I believe

Thank you

David

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peteroldracer
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Re: Inheritance Gift Tax

Postby peteroldracer » Tue May 24, 2022 5:04 pm

Quick answer to 3. All income from anywhere must be declared (assuming she is tax resident in Spain) so it makes no difference where the money is.
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elusive
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Re: Inheritance Gift Tax

Postby elusive » Tue May 24, 2022 9:06 pm

Inheritance tax rates depend on the region. Andalucias is now very high. Around 1 million before tax is due. But is dependent in where you fall ie immediate family etc. Probably best to get a gestor to sort it out for you

pensure1988
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Re: Inheritance Gift Tax

Postby pensure1988 » Sat Jun 18, 2022 8:12 am

Please can someone give some advice.

1) For Inheritance Tax on a monetary bequest received by a Resident from a Non-Resident of Spain is a Modelo 650 self assessment form that the Taxpayer has to complete for a settlement. I see it is a bit onerous as the instructions are 19 pages long.

2) Should the Taxpayer seek the advice of a gestor or Local Lawyer to assist in this Tax Assessment and settlement thereof.

3) I have been told that inheritance Tax should be paid 6 months after date of death of this family member . How is this possible as the family member passed away over a year ago(2021) and the bequest was only received in February this year(2022). I believe the Hacienda can charge up to 20% penalty for late submission.

Thank You

David

elusive
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Re: Inheritance Gift Tax

Postby elusive » Sun Jun 19, 2022 9:03 am

3 . In spain the tax is paid before the inheritance is taken but if the money is coming from the uk then maybe it might be different in terms of how its handled. Maybe message beach or you should get professional advice

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chrissiehope
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Re: Inheritance Gift Tax

Postby chrissiehope » Sun Jun 19, 2022 1:12 pm

When my husband died, his daughters had to pay inheritance tax in Spain before they could inherit. I know we had both Spanish & English wills, so I guess it was due to the Spanish one
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katy
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Re: Inheritance Gift Tax

Postby katy » Sun Jun 19, 2022 4:20 pm

That is the reason why many turn down their inheritance. You may have to lay down thousands for a couple of years.

El Cid
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Re: Inheritance Gift Tax

Postby El Cid » Sun Jun 19, 2022 5:34 pm

Katy, there is no seven year rule in Spain. Gift tax has to paid immediately.

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