Inheritance Tax Spain 2015. New rates and reclaims.
There is a lot of contradictory information regarding the calculation of the Inheritance Tax. There was a national law applicable to non-residents and a different law with a regional character that applied to those who were residents in each of the regions with legislative autonomy. Nowadays the regional law is applicable to both residents and non-residents.
The risk of paying high rates
But is there a real risk of ending up paying very high rates? Do not be alarmed. Before the 1st January 2015 most of the Spanish residents that inherited from other residents paid little or nothing given the existence of reductions in the taxable figure. Now all those reductions, bonuses and exemptions are fully applicable to non-residents.
In the Valencia region (Costa Blanca) a 75% bonus (formerly 99%) is applicable to the final tax figure. There are also reductions in the tax base with regard to the main property for spouse, children and parents.
Resuming, those property owners who have had the foresight to grant a Spanish Will shall find that in the majority of cases their heirs will not have to pay Inheritance Tax. In Valencia, after calculating the potential tax, there will be a 75% reduction bonus on the final payment.
For those who paid Inheritance Tax in the past, without reductions, exist the possibility to reclaim.
