Sun, 22 November 2009
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If you own a property in Spain, it is best to acquire some basic knowledge on Spanish inheritance tax to avoid future confusion.THE rules and rates for Spanish Succession Tax vary according to the relationship between the donor and beneficiary but unmarried couples and step-children usually pay more tax than spouses and natural children.
The individual regions can vary the Spanish succession tax (SST) allowances and tax rates, but only if the beneficiary and the deceased are habitually resident in the region. Habitual residents mean they need to have lived in the country for five years.
In some regions like Comunidad Valenciana (Alicante, Valencia and Castellón provinces), the Balearics and Madrid, there is almost complete exemption for spouses and children.
National rules will apply if the deceased and/or beneficiaries do not live in Spain.
The allowances and the tax rates vary depending on the Group the beneficiary falls into:
Group I:
natural and adopted children under 21
Group II:
* natural and adopted children aged 21 and over
* grandchildren
* parents, grandparents etc
* spouses
* unmarried partners registered as a pareja de hecho (only in certain regions)
Group III:
* in-laws and their ascendants/descendants
* stepchildren
* cousins
* nieces and nephews
* aunts and uncles
* sisters and brothers
Group IV:
All others including unmarried partners, unless registered as pareja de hecho in certain Regions
Under state rule, the surviving spouse receives an allowance of EUR 15,956, but there is no automatic allowance for unmarried couples.
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