The situation in Andalucía
Spouses, parents and children are now exempt from inheritance tax on estates of less than €1 million.
However, inheritance tax will apply in cases of beneficiaries who are not immediate next of kin, with the full liability payable in cases where there is no spousal or blood relation.
The new law means that around 95% of beneficiaries in Andalucía will be exempt from inheritance tax. The law change is likely to affect thousands of expats.
The situation in Murcia
Laws that came into effect on 1st January 2018 have reduced the succession tax burden for most families, including many expats and mean that immediate family members can receive estates largely tax-free, with children, spouses and parents liable for only 1% of a succession tax bill. Gifts will also attract just 1% liability; as long as a “documento public” has been signed and the origin of any cash gifts has been verified.
Murcia’s regional government says that around 15,000 taxpayers will benefit, saving a total of around €75 million.
Need information about finances in Spain? Contact Blacktower today!
Blacktower has four offices in Spain, and our representatives operate right across the country. As an expat financial advice specialist in Spain, we offer tried and tested advice that is built around your personal needs, investment goals and time horizon. Contact us today for more information about how we can help you with succession planning, and more.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
As it stands, EU citizens living in the UK are required to apply to the EU Settlement Scheme, which confirms that they are a settled resident of the UK. This has raised concern for many expats, and those living and working in the EU, about how they will be able to prove their identity and claim residency abroad if a no-deal Brexit goes ahead.