# Changes to IHT Andalucia



## Lynn R (Feb 21, 2014)

The Junta de Andalucia has announced that with effect from 2017, inheritances of less than €250,000 from parents to children (or other direct relatives, so presumably that means to a spouse since they are currently in the same group for IHT allowances) will be exempt from IHT. Currently this only applies to inheritances up to €175,000 so that is something of an improvement. 


La Junta declararÃ¡ exentas de impuestos las herencias de menos de 250.000 euros . SUR.es

The article does not mention the additional exemption of the family home (if valued up to €122,000) so I presume that is not affected.


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## Roy C (Sep 29, 2012)

That could be very useful, thanks for posting Lynn but is any property you own over here included in the estate that would come under the Spanish IHT?


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## Lynn R (Feb 21, 2014)

Roy C said:


> That could be very useful, thanks for posting Lynn but is any property you own over here included in the estate that would come under the Spanish IHT?



If the beneficiary or beneficiaries are resident in the UK and the assets inherited, whether property or anything else, are located in Spain, then they are liable for Spanish inheritance tax. If the beneficiary/ies are tax resident in Spain and the assets inherited in Spain, then they are liable for Spanish inheritance tax.

However, if the beneficiary/ies are resident in the UK and the assets inherited are outside Spain (children of parents who are resident in Spain but own a property in the UK, for example) then those assets are not liable for Spanish inheritance tax. The beneficiaries would only have to pay Spanish inheritance tax on anything the deceased owned in Spain.


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## extranjero (Nov 16, 2012)

Murcia- take note!


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## Alcalaina (Aug 6, 2010)

A related question. A bit complicated but someone on here will know.

If you are resident in Andalucia and inherit property in the UK (jointly with a UK resident), but don't sell it or rent it out, are you obliged to declare the inheritance in Spain? If so how and when is this done? The inheritance would be below the €250k threshold. I know it would have to be declared on the Modelo 720, but that's a different matter.


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## extranjero (Nov 16, 2012)

Alcalaina said:


> A related question. A bit complicated but someone on here will know.
> 
> If you are resident in Andalucia and inherit property in the UK (jointly with a UK resident), but don't sell it or rent it out, are you obliged to declare the inheritance in Spain? If so how and when is this done? The inheritance would be below the €250k threshold. I know it would have to be declared on the Modelo 720, but that's a different matter.


I think you have to pay tax on all inheritances, wherever in the world they come from


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## Alcalaina (Aug 6, 2010)

extranjero said:


> I think you have to pay tax on all inheritances, wherever in the world they come from


I don't have a problem with that. I just wondered at what point it has to be declared and any due taxes paid, given that the property can't be sold or rented because the surviving spouse will continue to live there.


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## Lynn R (Feb 21, 2014)

Alcalaina said:


> A related question. A bit complicated but someone on here will know.
> 
> If you are resident in Andalucia and inherit property in the UK (jointly with a UK resident), but don't sell it or rent it out, are you obliged to declare the inheritance in Spain? If so how and when is this done? The inheritance would be below the €250k threshold. I know it would have to be declared on the Modelo 720, but that's a different matter.


Yes, it would need to be declared. I am not quite sure how or when, but if the inherited assets were held in Spain it would need to be declared, and the inheritance tax paid if applicable, within six months of the death although a lawyer can apply to Hacienda for an extension to that period. So possibly a gestor or lawyer would need to submit a return to Hacienda, so that the amount could be declared later on the Modelo 720 without questions being asked as to the source of the funds?

The €250,000 threshold isn't in force yet, of course, at the moment it's €175,000.


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## Alcalaina (Aug 6, 2010)

Lynn R said:


> Yes, it would need to be declared. I am not quite sure how or when, but if the inherited assets were held in Spain it would need to be declared, and the inheritance tax paid if applicable, within six months of the death although a lawyer can apply to Hacienda for an extension to that period. So possibly a gestor or lawyer would need to submit a return to Hacienda, so that the amount could be declared later on the Modelo 720 without questions being asked as to the source of the funds?
> 
> The €250,000 threshold isn't in force yet, of course, at the moment it's €175,000.


That's useful, thanks. Both of us have very elderly sick parents so the inevitable is going to happen at some point soon; it's good to know you can apply for an extension.


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## Lynn R (Feb 21, 2014)

These changes have now been formally approved by the Junta de Andalucia and will come into effect from 1 January 2017. Another important change to note is that a family member who inherits a property which is covered by an exemption from IHT will in future only have to retain the property for 3 years before they can sell it, instead of 10 years at present.


La Junta aprueba ampliar las deducciones por la herencia de vivienda habitual . SUR.es


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