# Inheritance tax - Spain



## tinytina45

Does anyone know anything about the spanish inheritance tax??
I have just been to collect the deeds to my property in Torrevieja, and set about making out our will for there, to find how high the inheritance tax is, so obviously need to do our homework;
Me and my husband bought the house hoping it would be passed down to the children, 2 boys who are not his blood children, to find that as they are not his that they are in the higher tax bracket, would it be easier for him to adopt the children and give them better benefits??
Our will is to be that if i die or husband we each get left the house, in 2years we will both be permanent residents, will this mean we both would not have to pay the inheritance tax, 
Is there anyway to get round this tax like being residents etc, or is it always payable.
Just a bit upset but my fault not looking into this before hand, just wanted the kids to have a nice home at the end of things not a hefty bill to pay to get it.
thanks appreciate any advice


----------



## Veronica

I've moved this thread to the Spanish forum.


----------



## Alcalaina

Hi Tina

You will definitely be in a better position tax-wise once you are resident. There are plenty of articles about inheritance tax and wills on the web, but the rules vary between the different autonomous communities in Spain, so make sure whatever information you get does apply to Valencia. This might be useful:

*Special Tax Reductions for Valencia Region for Spouse and Descendants' Residents*

From January 2007, there are special reductions for Spanish residents in the Valencia Region for spouses, descendants, and ascendants. This reductions are the following:

-	Reduction of the base of the tax (the valuation of the inheritance assets), up to 40.000 EUR, for descendants, ascendants, and the living spouse who were Spanish residents in the Valencia region at the time of the death.
-	Reduction of the base of the tax (the valuation of the inheritance assets), up to 96.000 EUR, for descendants younger of 21 years old, who were Spanish residents in the Valencia region at the time of the death.
-	Reduction of the tax rate up to 99 % for the descendants, ascendants, and the living spouse who were Spanish residents in the Valencia region at the time of the death.


----------



## nigele2

tinytina45 said:


> Does anyone know anything about the spanish inheritance tax??


As with many things in Spain this is a very overly complex red tape mess but after my investigations I discovered that if you have a detailed will in place (preferably a UK one assuming you are British) then your children will have few problems and on a £200,000 house (2010) almost zero tax to pay and a sliding scale upwards from there.

While UK inheritance law appears to pass control to Spanish Inheritance law, and vice versa, the inheritance tax issue resides in Spain for any property and assets there - if that makes sense. 

As I understand one problem in Spain is that by default if one parent dies that share of the inheritance is with the kids unless legally otherwise resolved. So a valid will is vital. Not inferring your kids would rob you but there have been cases in Spain of kids making their older surviving parent's life hell.

I was advised to ensure that the minimum of assets (ie. the house) were tied to Spain keeping the rest in the UK with the £600000 allowance.

As always I offer this based on my research last year so please take professional advise as always. Hope that helps just a tiny bit


----------

