# Inheritance Tax



## Triker54 (Nov 10, 2013)

We're still at the research stage before we make the decision as to whether or not to move to Spain. One of our main concerns at the moment is about inheritance tax.

As I understand it, if we were residents and I were to die then 50% of our joint assets worldwide would be deemed to be mine and tax ( in our case of about 30%) would be charged on that less the 15800 euro allowance. If there is no way around this then this would result in financial hardship for my wife.

All of you who have made the decision to move to Spain must have considered the pros and cons. Is there a way to avoid what I see as a draconian tax or have all of you who have made the move just decided it's worth the financial hit?

Many thanks,
Peter


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## Alcalaina (Aug 6, 2010)

Inheritance tax varies by region. In Andalucia, the spouse and children are exempt provided they are tax-residents here and the total value of the inheritance is less than €175,000.


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## CapnBilly (Jun 7, 2011)

Thee are big variations by region. Alcalaina has already mentioned Andalucia. Valencia is not too bad these days, with an allowance of €100,000 and 75%relief thereafter. These limits changed in August, as did Murcia, which was quite generous, but is now more or less the national allowances. However, all these allowances are for residents of the region only. Otherwise it's the national allowance, as you quoted, except there is an exception for the property where you normally live where there is 95% relief upto €122,606 per inheritor, providing the property is retained for 10 years. ( in Valencia it's 5 years). There are some techniques you can use to reduce the value further.

The other key point is that Spain is currently undergoing a case in the European Court brought by the EU for discrimination against residents of different regions, and non-residents. This is similar to a case a few years, where in the end they had to change the law concerning capital gains tax for the same thing. In the end they equalised it by reducing it for non-residents and increasing it for residents. The likely outcome of this case is the same, particularly as there was a case against Germany for more or less the same thing, which went against them.

However, how it will change is any bodies guess.


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## Triker54 (Nov 10, 2013)

Thanks for the replies. That's very useful - it's almost certainly going to be the Valencia region where we move to and even though there is uncertainty over the future it's very reassuring to know the present situation.
On a different note - we're the boring sort who always do lots of research before making a move, but we've never done anything which is as frustrating as researching the move to Spain. Every book we own or has read says something different about almost every aspect of the move; every time we think we've discovered 'the answer' we find that it's only a partial answer and really everything rests on the whim of the local mayor; every time we overcome one obstacle we find another three ahead of us! This forum has helped enormously but does anyone know of a book/resource out there which actually lays down up-to-date information on all-you-need-to-know about moving to Spain?
Many thanks,
Peter


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## xabiaxica (Jun 23, 2009)

Triker54 said:


> Thanks for the replies. That's very useful - it's almost certainly going to be the Valencia region where we move to and even though there is uncertainty over the future it's very reassuring to know the present situation.
> On a different note - we're the boring sort who always do lots of research before making a move, but we've never done anything which is as frustrating as researching the move to Spain. Every book we own or has read says something different about almost every aspect of the move; every time we think we've discovered 'the answer' we find that it's only a partial answer and really everything rests on the whim of the local mayor; every time we overcome one obstacle we find another three ahead of us! This forum has helped enormously but does anyone know of a book/resource out there which actually lays down up-to-date information on all-you-need-to-know about moving to Spain?
> Many thanks,
> Peter


things change so often & so quickly that by the time a book is in print it is likely to have a lot of out of date info - so much for the _mañana _attitude!

we do manage to keep pretty up to date on here - & often have 'breaking news' long before anywhere else! 


a lot of us live here - some of us for a very ling time - many of us speak & read passable to excellent Spanish & therefore read the Spanish press/watch Spanish TV so keep up to date with what is going on in the country


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## caromac (Nov 16, 2008)

Keep up the research. Occasionally the British Consulate do roadshows in this area aimed at expats. They are really worth attending. We received some excellent information at one of them. 
We are just into our seventh year and are still learning - every day is a school day they say!
Of course there is some good information on here provided by those with experience but do remember that there are some opinions that are just not based on fact.


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## xabiaxica (Jun 23, 2009)

caromac said:


> Keep up the research. Occasionally the British Consulate do roadshows in this area aimed at expats. They are really worth attending. We received some excellent information at one of them.
> We are just into our seventh year and are still learning - every day is a school day they say!
> Of course there is some good information on here provided by those with experience but do remember that there are some opinions that are just not based on fact.


of course opinions aren't facts...... facts are though 

and wherever possible we'll provide links to official sources - there are lots in the FAQs thread & they are regularly updated


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## caromac (Nov 16, 2008)

Yes sorry for the confusion I was trying to say that some things are stated as being 'facts' which are clearly not - I had a specific statement in my mind that I read on a post the other day which could not have been even remotely a fact ;-) In my opinion, of course!


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## xabiaxica (Jun 23, 2009)

caromac said:


> Yes sorry for the confusion I was trying to say that some things are stated as being 'facts' which are clearly not - I had a specific statement in my mind that I read on a post the other day which could not have been even remotely a fact ;-) In my opinion, of course!


I hope you commented on it then


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## caromac (Nov 16, 2008)

No I didn't because it was a thread regarding a real issue someone was experiencing. I didn't think it was the time for me to make what was likely to have been considered an inflammatory comment. I just did what I do, sit back, seethe for a minute and then go back to enjoying our sun bathed mountains ;-) OR as I think I did on that day come down for a ride over Montgo stopping at Cabo de San Antoni - breathtaking!


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## xabiaxica (Jun 23, 2009)

caromac said:


> No I didn't because it was a thread regarding a real issue someone was experiencing. I didn't think it was the time for me to make what was likely to have been considered an inflammatory comment. I just did what I do, sit back, seethe for a minute and then go back to enjoying our sun bathed mountains ;-) OR as I think I did on that day come down for a ride over Montgo stopping at Cabo de San Antoni - breathtaking!


well if you see an opinion stated as fact - & you KNOW that fact to be wrong - & you don't want to comment publicly, feel free to PM one of us mods about it in future 

not much of a view from San Antoni today - the fog hasn't cleared at all  

in fact Montgó has completely disappeared!


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## gus-lopez (Jan 4, 2010)

xabiachica said:


> well if you see an opinion stated as fact - & you KNOW that fact to be wrong - & you don't want to comment publicly, feel free to PM one of us mods about it in future
> 
> not much of a view from San Antoni today - the fog hasn't cleared at all
> 
> in fact Montgó has completely disappeared!


Yes & it has been drifting down here all morning ! 
Went to Águilas earlier, lovely down there, I wish I'd stayed.


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