Search:     Go  
The Spanish Lawyer Online
The Spanish Lawyer Online

Spanish Inheritance Tax: How much is it?

Antonio Flores
1st of February 2000

Where spanish property, and generally, the estate of a person is transferred by inheritance, the Tax authorities charge as spanish inheritance tax (IHT) a percentage on the tax base according to a sliding scale where different considerations are taken into account. The same scale is applicable to donations, which is important insofar as this tax could be applied to a purchase/sale contract where the Tax Authority deems that the parties have underdeclared the price of the property on a Public deed of conveyance or, in some cases, private purchase contract.

Donees and inheritors are divided into four categories, depending on the relationship with the deceased, and allowances are conceded depending on the group.

  • Group 1: Descendants and adopted children under 21: 15,956.87 €, rising to 47,858.59 €, depending on age.

  • Group 2: Descendants and adopted children over 21, spouses, parents and adoptant parents: 15,956.87 €,

  • Group 3: Relatives in second and third degree, that is, brothers/sisters and nephews/uncles, respectively. 7,993.46 €.

  • Group 4: Relatives in forth degree, or withourt any relationship, for example, a friend. Nought.

Once the appropriate allowance has been deducted, the following tax rate is applied to the remainder:

When the tax has been calculated , a multiplicand is applied to the figure, taking into account pre-existing wealth as well as relationship with the deceased. It has to be noted that Spain does not recognise the concept of partners or common law spouse when aplying inheritance tax.

An inheritor who qualifies for the bottom of both scales and falls in group 4 will find the Tax Authority demands from him prior to registering the property under his name a monstrous percentage of 81.6 of the estate left.

Fortunately, very few people qualify in such groups, and if they do, there are legitimate ways to get round the bite. A versed lawyer on inheritance matters will assist you in order to mitigate the exposure to this tax.

Is a Spanish will necessary if I am a foreigner?

A spanish will is not absolutely necessary althouth it is highly recommendable. The truth of the matter is that many people avoid drawing up such documents since death is not an issue at a certain period of life. However, any asset proprietor in Spain should arrange his post-death affairs in a neat way, inasmuch as the heirs would otherwise be involved in consuming and expensive legal procedures which would attract different legal jurisdictions. An experience not recommended by those who have experienced it.

Furthermore, so far nobody has died from drawing up a simple will.

If I have a foreigh will?

A foreign will may cover your Spanish assets but again the procedure involves obtaining the probate of will in the jurisdiction of the will, legalisation, translation and a lot of legal assistance througout the procedure that most certainly will amount to a prohibitive legal fees bill.

Where are spanish wills registered?

A most widely used type of will is signed before a Notary Public, who keeps the original. A copy is then sent to a central registry of wills which is located in Madrid. This registry issues a certificate upon death of the testator with the contents of the will and is necessary in order to procure the transfer of the assets on to the inheritors.
Page copy protected against web site content infringement by Copyscape

Discuss this Article

  • sandy Says:

    I have read several conflicting pieces of advice with regard to the treatment of stepchildren in Spanish Succession laws. Some advisers say they are treated the same as no relation (Group 4) and some say they are in Group 3. How can I find out the correct position. It makes a big difference to me. The property in question is in Andalucia.
  • Malcroach Says:

    You are correct Stepchildren are classed as Group 4 unless they have been legaly adopted
  • jill payne Says:

    please could you advise as to which group my cousin would be classed in She is my mothers brothers only child Ihave recieved differant answers and need the correct one please
  • Lawbird Lawyer Says:

    Dear Jill, You are probably receiving conflicting replies because you may not be asking the right question. Who is the one bequeathing their Spanish estate? You, your mother, or your mother's only brother? Depending on your reply then we can determine the degrees of kinship which will in turn translate into your cousin being included in one group or another for tax allowance purposes. Yours faithfully, Raymundo Larraín Nesbitt
  • dorozi Says:

    We have spanish wills but what happenes regarding inheritance tax if one of the partners die, we have 4 adult children that live in the UK.
  • Lawbird Lawyer Says:

    Dear Dorozi, If one of you dies, the surviving spouse is not exempt form paying IHT in Spain. If the survivor is fiscal resident they can qualkify for a tax allowance of 95% on thier taxable base. In addition some regions in Spain raise this tax allowance to almost 99,99% meaning there is no tax to be paid. Regarding the children it pretty much depends who are the appointed beneficiaries in your last will. What is the content of your will? Who are the appointed beneficiaries? Do they inherit in equal shares? Spanish IHT is a fairly complex and technical matter as multiple parametres need to be taken aboaed to do the calculations. Yours faithfully, Raymundo Larraín Nesbitt
  • mrblue Says:

    Hi, My parents purchased an apartment in Costa del Sol spain about 16 years ago, we live in the uk. They are both on the deeds and do not have a spanish will. My dad died 7 years ago and the apartment was not mentioned in the will. Obviously his estate went to my mum. The apartment was bought for £35,000 and at my dads time of death would have been worth about £95,000. Would my mum have to pay approx £10,000 in capital gains tax? Also we have only been made aware that there is a wealth tax, how much is this per year? This may have been paid for the first two years only. Also, what documents would we need to bring to a spanish lawyer?. My mum would like to leave the apartment in her will to myself and my sister, what would be the easiest way of doing this, or can we purchase it of her? I know this is a lot to ask all at once, any information would be a great help. Kind regards, Beverley
  • Lawbird Lawyer Says:

    Dear Sir, You're right, lots of questions. First of all your father passed away in 2003, therefor neither Spain's IHT ("Impuesto de Donaciones y Sucesiones", or ISD for short) nor Plusvalía Tax is no longer payable; although your lawyer will have to both file and lodge it at the Land Registrar regardless. Wealth tax is a tax that although is still active has been surpressed as from the 1st of January 2008: Spanish Inheritance Tax Abolished? I’m Afraid Not 19th September 2008 What you are really asking me is how much is the imputed income tax on the Spanish property. As a rule-of-thumb its 24% of the 2% of the cadastral value. The cadastral value is a value taken for real estate assets employed to calculate different taxes whether national, regional and local. You'll find the cadastral value for your mother's property in any IBI receipt. More on this: Up to 300% Increase in Property Taxes in Malaga in 2009 -12th September 2008 Your mother can either bequeath you her Spanish estate or else you can buy it outright from her, yes. I would need all more information on the matter to give you an informed advice. Buying it outright would be approx 10% of the value of the property without a mortgage and 12% with a mortgage. The Transfer Tax payable is 7% for the buyer and the vendor pays both 19% CGT and Plusvalía tax. We can asssit you both in the conveyance of your mother's property as well as drafting her Spanish last Will. Please contact us if you want more details. Yours faithfully, Raymundo Larraín Nesbitt
  • mrblue Says:

    Dear Sir, Thank you for your speedy reply, it is greatly appreciated. Mum thinks she has to buy dads half of the property as both names are on the deeds, is this true? Could you give her a rough idea of costs incurred to take dads name off the deeds and to make a spanish will, leaving the property to myself and my sister and all taxes involved in this? She is very worried about the costs involved. Mum is travelling to Spain in May and was hoping to arrange a consultation. Can I email you with details if possible? Thank you Beverley
  • Lawbird Lawyer Says:

    You're welcome. Sure you can e-mail me the details and set an appointment with me: contact form Your mother would be right if your father was still alive. If he were alive the most efficient solution possible from a tax mitigation point of view would be to follow what is known as a "Dissolution of Joint Property Ownership" (DJPO, for short) which only attracts 1% Stamp Duty on the full property value waiving de facto 6% Transfer Tax. More details on this DJPO procedure in my article: Dissolution of Joint Property Ownership in Spain - 14th November 2007 However, as your late father passed away seven years ago, following what you write, a DJPO cannot be followed. An estate of transfer to heirs must be followed. More details in my article: Spanish Inheritance Tax: Advantages of Making a Will in Spain - 3rd September 2009 The legal service is explained in detail here: Estate Transfer to Heirs Yours faithfully, Raymundo Larraín Nesbitt
  • Mike Says:

    My father has passed away. he owns a apt. in spain. I am 45 and my brother is 49. The property is paid for. We live in the USA. what should I do now?
  • Lawbird Lawyer Says:

    Dear Sir, You need to retain a lawyer and porceed with the transfer of the Spanish estate to the appointed beneficiaries, presumably yourself and your brother. To have the property transferred over to your name a legal procedure must be followed. Firstly a Grant of Probate must be obtained. Following that a Deed of Acceptance and Declaration of Heirs has to be done before a Spanish Notary public. Following that death taxes have to be calculated, paid and filed. Only then will the property be lodged under both of your names. We offer you our legal services should you be interested (please click on the blue link): Estate Transfer to Heirs This service is intended for those who are inheriting the Spanish assets of a deceased person, whether as the legal heir to an estate or by means of a Will. The Estate transfer to heirs service includes: • Requesting copies of the Death Certificate, in the event that the death took place in Spain. • Requesting of a Will Certificate information and location from the Central Registry of Wills in Madrid. • Obtaining of the Will from the Notary Public where it was signed / Estate Heirs Statement (in those cases where there is no will) • Drafting and signing of the Deed of Inheritance Acceptance • Partition of the inheritance according to what the will states, or, where there is now will, to the desires of the inheritors . • Inscription at the Land Registry of the new owners of the Estate inherited. • Cadastral modification of new owner • Arrangement, calculating and payment of the applicable Spanish Inheritance Tax. • Arrangement, calculating and payment of the applicable Plusvalia Tax. If you're interested in this legal service, please contact us. Yours faithfully, Raymundo Larraín Nesbitt
  • Peter Rayner. Says:

    Catalunya changed the law on adopted children last year and now they are treated the same as any direct descendant..
  • L. Sanderson Says:

    My partner and I are not married, but we have joint ownership of our property. We are both tax residents in Spain. Would it benefit us to get married with regards to inheritance tax?
  • Lawbird Lawyer Says:

    Dear Madam, It would greatly benefit both of you fiscally, yes. There's a national tax allowance on IHT form one surviving spouse to another of 95% of the taxable base if you are tax resident in Spain. Yours faithfully, Raymundo Larraín Nesbitt
  • Ellena Says:

    My husband died unexpectedly after living in Spain together for 25 years, and having permanencia. Having reached pension age and retired, our only assets are our home valued approx 300.000 euros and in joint names, other than that we lived on our pension. What sort of money is it going to cost me to have the house transferred to my name so that I can sell and downsize?
  • Ellena Says: again..if I cannot afford the inheritance tax to claim my husbands share of our joint owned there any reason that I couldn't sell my half in order to raise the funds to pay the inheritance tax....I'm feeling quite desperate, and never imagined that at 70, I would be left in this situation....we did everything legal, and both thought that each other would be fairly safe.
  • Diane MCkAY Says:

    Mr step daughter mother died three days ago just as she was to sign the sale of her apartment and return to the UK. She made an english will leaving everythink to her daughter. Am I reight to assume she as to have a lawyer in Spain and one in England. Will the English will be accepted.Can the sale go ahead and what needs doing. The Spanish laywer dealing with the sale as the deeds as she died the night befiore she was due to sign and in fact they investigated why she did not turn up .and called the police to break in. My step daughter is quiet fragile and is fearful she will will be ripped off.
  • Lawbird Lawyer Says:

    Dear Ellena, If you've been living in Spain for the last 25 years I take for granted you are resident here. State law rules that surviving spouses are entitled to a 95 p.c. tax exemption from the value of their property on inheriting in Spain from their spouses. You have to be resident in Spain and have lived in that property for at least the the 3 previous years and be able to prove it. Regional laws have even more lenient tax allowances and exemptions wich may bring down the IHT tax bill to zero. Depending on where your property is located in Spain (in which of the 17 regions or autonomous communities) these regional laws are applied. Moreover, if you do have to pay IHT you can request to differ it or even pay it in installments over a five year period. If you had a whole life insurance this will normally pay off the average IHT tax bill comfortably. Please read carefully my article which may help to clarify issues for you: Spanish Inheritance Tax: Advantages of Making a Will in Spain - 3rd September 2009 You can try to sell your half of the property but I doubt you will find a buyer. I think you ought to hire a priofessional such as a lawyer or a tax expert to give you an estimate of your IHT liability. From what you derpict on your post you may be pleasantly surprised on finding your IHT bill considerably lower than what you were led to believe. There are plenty of unscrupulous companies preying on British and Irish misselling them financial and legal services to waive Spain's IHT when the reality is that many beneficiaries are in no real need of them. This may be your case. Take advice and request an estimation of yout tax liability. Yours faithfully, Raymundo Larraín Nesbitt
  • Lawbird Lawyer Says:

    Dear Ms McKay, An English will is prefectly acceptable and legal to bequeath a Spanish estate. However it is impractical for a number of reasons which are explained in detail in my article: Spanish Inheritance Tax: Advantages of Making a Will in Spain - 3rd September 2009 The sale cannot go through until IHT is paid and the property is registered under your stepdaughter's name at the Land Register. The problem with English wills on bequeathing Spanish estates is that they take on for ever. The Grant of Probate normally exceeds one year so the beneficiary will attract all the penalties for late payment of the IHT. Which is why Spanish lawyers always recommend foreign clients to have to wills in place, one in your home country ruling on your assets there and a second one specific for your Spanish assets. Yours faithfully, Raymundo Larraín Nesbitt
  • Tony Says:

    My mam died two years ago in Spain, she bought property with my stepdad. before she could sign her will she died. With Spainish law who does the property go to.
  • Lawbird Lawyer Says:

    Dear Sir, What nationality did your mother hold? Was she married to your stepfather? Did she draw up a will in her home country? Did she have more children? What value was the Spanish estate? Did she own real estate assets (i.e. dwellings, plots of land) in her home country? In which of Spain's 17 regions was the proeprty located? Yours faithfully,
  • Tony Says:

    Her nationality is English she is married to my stepfather and there was no will made at home, the day she was to sign her will in Spain she died, my mother have one daughter to my stepfather. She had no other property in England, the only property they had was in Alicante.
  • Lawbird Lawyer Says:

    Dear Sir, In that case Spanish law would apply and you would inherit in equal shares with your stepsister. Yours faithfully,
  • Nichola Says:

    Dear Sir, My father passed away in Feb 2006 and at the time of his death, his 50% of the property passed to my mother. At the time of his death, my mother was asked to pay 1700 euros (although she cannot remember now what this was for) and now she is selling the property, she is being asked to pay IHT in excess of an additional 10,000 euros. My mother has been advised that the law has recently changed whereby the surviving spouse receives a 95% allowance on IHT but unfortunately my father died before this date and as such she must still pay at the previous rate. This seems very unfair, does this sound right?
  • Lawbird Lawyer Says:

    Dear Nichola, To the best of my knowledge that tax exemption available to resident surviving spouses of 95% on the estate has been going on for quite a while now, as in for the last quarter of the century as per art 20.2 of the LISD from1987. It is not a "recent" change by any extent of the word. Your father was well alive when this tax exemption was already in force and I was in school. Yours sincerely, Raymundo Larraín Nesbitt
  • Christopher S. Says:

    Dear Sirs, my grandfather (mother's father) died a few years ago, leaving property in Majorca and his assets to his 2nd wife in a Spanish will. Now she has died and has left the whole estate to myself and my brother, as well as my uncle. Although we are blood relations to my grandfather and those were his wishes, we apparently are not blood relations to his 2nd wife and there is confusion over what should be happening. She has no living family. The Spanish solicitor has appointed himself as executor which we find surprising, and has told us to wait 24 days until the will can be read. He has locked the property up, holds the keys and refuses any person to go there until the will has been read. He has also advised we will have to pay "high IHT" but has not quoted a figure. Any advise would be useful as we are very concerned with all of the above. Many thanks.
  • Lawbird Lawyer Says:

    Dear Christopher, The Executor is right. As you are not kinship of your grandfather's second wife you will be ranked for IHT purposes in Group IV meaning you have no national tax allowance. Besides, I take for granted you are not resident in Mallorca either so you are not eligible for lenient regional tax allowances either. The above two points will land you higher in the tax bracket for IHT. Regarding the lawyer withholding the will for the next 24 days I have no idea why he may be doing that. Perhaps he does not have the will as you believe or maybe he's just making sure it is indeed her last will requesting from Madrid's Central Registry of Last Wills information pertaining to it which takes on average 2-3 weeks. I'm sure there's a logical explanation to it. You can read further on IHT in our articles: EU Pulls the Stops and Vows to Put and End to Inheritance Taxation Discrimination on Non-Resident Beneficiaries Inheriting in Spain -20th May 2010 New EU Regulation to be Passed on Succession and Wills -18th May 2010 Spanish Inheritance Tax: Advantages of Making a Will in Spain – 3rd September 2009 Free Testamentary Disposition for UK Citizens: Only if You Own Property in the UK – 22nd October 2008 Spanish Inheritance Tax Abolished? I’m Afraid Not - 19th September 2008 Ways on How to Avoid Inheritance Tax on Spanish Property – 22nd June 2005 Applicable Inheritance Law to Estate Located in Spain – 16th April 2004 Spanish Inheritance Tax: How much is it? – 1st February 2000 Let me know if you are interested in hiring us to represent your legal interests in this matter. Our law firm acts nationwide. Yours sincerely, Raymundo Larraín Nesbitt
  • Joe Hill Says:

    My mother and father, married to each other, own a property in Alicante Province. They are both German citizens, and do have Spanish NIE numbers, as far as I know. They are both on the deed, the home valued at approx. 120,000 Euros. If one partner dies, what is the tax liability for the other partner, being that they are not Spanish citizens. Best Regards, Joe Hill
  • Susanna K Says:

    Dear Sirs. My partner and I bought a house near Denia, Alicante. I would estimate the house to be worth in the region of Euros 600,000 and it is in our joint names. We are not married. I have three children aged 17,19 and 22. My partner has a son aged 15. We are making a spanish Will on 28 July. We would like to leave the house to the other surving partner. Should we both die together then we would divide the house equally between the four surviving children. As we are not married, I assume that I would be considered group 4 and would have not qualify for any inheritance tax allowance. Would this be on just one half of the property as it is in joint names? Also, should we both die, please would you define which groups the children would fall into with regards to inheritance tax? We do plan to get married but thought it would be the responsible thing to make a will now. Do we have to make another will when we marry? Thank you very much. Regards, Susanna K
  • aflores Says:

    Dear Susanna, If you are not married you will in the least favourable group. Your children will come under group 2 in any case, unless of course one of the children not related to one of the owners does inherit. With regards to the sum on which the tax will be applied it is the amount being bequeathed, which means that if you inherit from your partner, or viceversa, you will have to pay taxes only on 50% of the value of the property. You may wish to change you will whereby your children will receive the bare ownerhsip of the property while you both retain the life interest. This will reduce the exposure on IHT quite considerably.
  • Susanna K Says:

    Dear aflores Thank you very much for your valuable advice. Please permit me one more question: When we are married, would any step-child be considered as if they were your own child? None of the children have been legally adopted. As mentioned before, the house is in Alicante district and we are non-resident at present. Thank you once again. Regards, Susanna.
  • steffi Says:

    My husband and myself are thinking of buying a property and moving to Spain on a permanent basis. I have concerns about IHT due to be being a few years younger than myself I could be the surving spouse. We have no children so I would probably leave the property to my nieces and nephews who are blood related to my husband what category would they be appropiate for IHT.
  • Lawbird Lawyer Says:

    Dear Steffi They would be classified in Group IV. Yours sincerely Raymundo Larraín Nesbitt
  • Rosemary Says:

    If I make a Power of Attorney over to my son, so can he sell my apartment after my demise, on the Costa del Sol without having to pay tax to take it over first. It's impossible that he could raise sufficient cash to pay the tax on the property. Thanks a lot
  • Lawbird Lawyer Says:

    Dear Rosemary It would be an excellent idea if it weren't for a small detail. You still have to file and pay taxes on selling the property. And it would be you through your legal representative who would be doing this. He, knowing fully well that you have passed away, would have to pretend you are still alive on selling. This may cause him legal problems with the Spanish Authorities if caught. The POA is no longer valid on you dying if the proxy knows you've died. A son, your son, would logically know you've died on selling the property. Its a risk he's taking. In any case let me write once more that Spanish Inheritance tax has been grossly overblown over the last couple of years by a minority with vested interests in scaring people to hire their services to waive paying IHT. Normally this service is a one-trick pony, meaning they only give you THE one and only solution. When in fact there are many legal tools available to mitigate exposure to Spain's dreaded IHT: Ways on How to Avoid Inheritance Tax on Spanish Property - 22nd June 2005 IHT is high for the follwing groups of beneficiaries: 1. Non-relatives (i.e. friends) 2. On inheriting large estates 3. On the inheritor being non-resident in Spain (i.e. domiciled in the UK) and therefore cannot take advantage of lenient regional tax allowances in combination with one or both points above. This bars them from benefitting from generous regional tax allowances in lieu of the more draconian State law. However some regions in Spain require you have taken resident status for a number of years prior to the death, i.e. five years. Please read my article on IHT in Spain for more details: Spanish Inheritance Tax: Advantages of Making a Will in Spain - 3rd September 2009 Sincerely Raymundo Larraín Nesbitt
  • Talia Says:

    Dear Sir/Madam, my father passed away in December. He jointly owned an apartment in Mazarron with my mother. It was on he market before he died for 90,000 euros. Before we can sell it we obviously need to pay IHT. The beneficieries are my mother, myself and 2 siblings. I am extremley worried we cannot afford to pay inheritence tax as we have no savings whatsoever. (siblings are both at university and I am a single mother.) I dont even know how much it is? What would happen now? Can we just give up the apartment to the spanish state? It is not ideal but I am scared of us all owing huge amounts of money, Thank you.
  • Talia Says:

    Dear Sir/Madam, I forgot to mention that my mother and father were not resident in spain. Thanks again
  • Rosemary Says:

    Thank you so much Raymundo for taking so much trouble with my query. Maybe a POA would be helpful in the meantime, in case I degenerate slowly + cannot take care of my own affairs. Would a POA need to be made in Spain ? Thank you so much for your reply - I'm now going to read your articles. Kind regards - Rosemary
  • Lawbird Lawyer Says:

    Dear Talia On a property that is worth only 90,000€ and you are 4 beneficiaries inheriting presumably 25% each you are worried on paying a high IHT? You do NOT need to give away the property much less to the Spanish Tax office (!) unless you love them for some bizarre reason. I repeat once more, there is a minority of unscrupulous people that have vested interests in scaring the wits out of foreigners (particularly non-residents) into hiring their services (which is basically only one) blowing Spain's IHT out of all proportion. I've even read brochures in which they advise that normally it will be neccessary to sell the Spanish house to pay off the high IHT tax bill (!!) unless you hire them as on average Spain's IHT is 40/50% or even more of the value of the estate. This is highly misleading if not downright false. Please read carefully the articles I quote in my prior post above. Spain's IHT is only high when inheritors are: a) non-relatives (i.e. friends) or distant family members b) and or the estate bequeathed is of a high value. In your case you are close relatives (next-of-kin) and the value of the estate is very low. Your tax liability will be nil or close whether all of you are resident or not in Spain. And even if you had something to pay you can pay in installments and/or request a deferral on payment paying over the next 5 years. But this won't be your case, rest assured. Yours sincerely Raymundo Larraín Nesbitt
  • Lawbird Lawyer Says:

    You are welcome Rosemary. A POA can be signed in England if you wish, it is compeltely unnecessary to travel over to Spain to grant one, unless you want to enjoy the splendid weather! The POA would have to be drafted by a Spanish lawyer, such as ourselves, in double column English-Spanish. We can refer you to UK notaries if you wish. If your mental state should change for the worse, God forbid, then the POA would prove extremely useful to your son whilst you are alive to manage your worldy affairs. It's a clever solution that many opt for. Regards Raymundo Larraín Nesbitt
  • Talia Says:

    Dear Raymundo, Thank you for your reassurance on this subject. I think, as you say, I have been reading too many scare stories on the internet! I had worried myself sick over this as my family does not have a huge amount of money. I am due to see a soliciter on Monday to organise the sale of the property. Many thanks once again. Talia
  • Lawbird Lawyer Says:

    You are welcome Talia. I agree, far too many scary stories being told with vested interests lurking behind. Regards Raymundo Larraín Nesbitt
  • steffi Says:

    I have major concerns, I have been looking forward to moving to Spain and this might not happen due to reading the above. My heirs will not be blood related to me as they are siblings/nieces and nephews to my husband.Am I correct that they might have to pay 82% IHT.Is this common in Spain.
  • Lawbird Lawyer Says:

    Correct Steffi, in the most extreme cases Spain's Inheritance Tax may reach a whopping 81,6% which is tantamount to expropiation in my opinion. I include this in my article on Spanish Inheritances: Spanish Inheritance Tax: Advantages of Making a Will in Spain - 3rd September 2009 Spanish IHT most onerous cases are related to the transfer of large estates or assets bequeathed to distant relatives or non-family members such as friends (Group IV). It is in both of these cases, which are a minority really, in which the IHT liability can be high, too high, reaching even 81,6%, which is tantamount to expropriation in my opinion. Hence the need of tailored tax planning which may indeed justify setting up corporate structures, for tax mitigation purposes, on such cases. The key to successfully mitigate Spain’s IHT is to plan ahead prior to the purchase of a property in Spain. That said, 82% is the maximum and you can only attain it with multipliers taking in mind a series of factors such as the beneficiaries already owning considerable pre-existing wealth in Spain as well as the taxable base being above 800k. It is very very difficult to reach such a high percentage. Spanish Inheritance Tax: How much is it? - 1st February 2000 I'm aware that some unscrupulous companies (none of them law firms) over the last two years are quoting 82% of IHT as if this was the normal rule and happened everyday to non-resident beneficiaries. I've never seen such an extreme case and we deal with inheritances on a weekly basis. So unless your non-resident beneficiaries are already seriously affluent real estate owners in Spain and you are bequeathing them over a million euros worth each you will not reach such high percentages as you quote. But even so it will be very high. Unfortunately we do not give free tax assessments unless we are hired. In any case, following what you write, if you still haven't bought the property yet you are in an ideal position to mitigate future IHT exposure to your heirs. As I write in my article above: "The key to successfully mitigate Spain’s IHT is to plan ahead prior to the purchase of a property in Spain". Besides there's an ongoing trend to abolish IHT in Spain as well as making all non-resident beneficiaries benefit from the lenient tax allowances which are currently applied only to residents: EU Pulls the Stops and Vows to Put and End to Inheritance Taxation Discrimination on Non-Resident Beneficiaries Inheriting in Spain - 20th May 2010 Sincerely Raymundo Larraín Nesbitt
  • Spanish American Says:

    Dear Lawbird Lawyer - Could you please explain the tax consequences of the following situation? My father - a Spanish citizen living in both the US and Spain - leaves in his will a securities portfolio of approximately $500,000 Euros and a piso in Madrid worth ~$500,000 Euros, additionally there is a small apartment near Valencia worth ~ 150,000 Euros. His 3 children are the only beneficiaries - he is divorced. What are the tax implications? How much would we owe individually or collectively? Thank you so much.
  • Lawbird Lawyer Says:

    Dear Sir or Madam I'm sorry, we do not make free tax assessments. You would need to hire us to draft you a report on the tax liability of each of the three beneficiaries. Please contact us for a quote on said report. Sincerely Raymundo Larraín Nesbitt
  • Andrew Says:

    Hi There, My uncle died last month in alicante un fortunately he left no will. he was divorced from his wife who lives in a nursing home in alicante, he had a 5 bedroom property the value I have no knowledge of but he left instructions that my aunt could if she so wished in the event of his passing live in the house untill her death. this we are told would not be physically possible as she is 96 and cannot do anything for herself. My uncle is survived by his three sisters who are all very elderly and are not familiar with spanish inheritance laws. would it be possible for you to give some basic guidence in what we should do and possible up front costs we would expect to incurr. many thanks in anticipation of any help. Andy
  • Lawbird Lawyer Says:

    Hi Andy Without detailed information I cannot give you an accurate quote. On inheriting an estate in Spain the costs woudl be as follows (broadly speaking): 1. Lawyer's fees. Minimum €3,000 plus 18% VAT. Normally higher (average being approximately €5,000 plus VAT). 2. Spain's Inheritance & Gift Tax (IGT, for short). State law would apply as presumaby all beneficiaries are non-resident in Spain. The exact amount levied depends on multiple parameters. 3. Plus Valía tax. Tax on the incraese of value of the land. 4. Land Registry fees. 5. Notary fees. I would advise you to read the following articles written by us which will give you an idea: Spanish Inheritance Tax: Advantages of Making a Will in Spain - 3rd September 2009 Spanish Inheritance Tax: How much is it? - 1st February 2000 Sincerely Raymundo Larraín Nesbitt
  • Ron Says:

    You mentioned that there is a significant allowance if a spouse inherits (95-99%) so long as the spouse is "fiscally resident". Can you tell me what this means and how you can determine whether you are or not. Thanks
  • aflores Says:

    Hello Ron, In order to be fiscally resident you have to apply for residency at the Police Station. Generally speaking (and legally applicable in most regions in Spain), one has to be resident for at least 5 years prior to the death of the testator that gave rise to the right to inherit. I can however share with you a secret: in Marbella, we are registering all the clients who we represent for inheritance matters with the police station, as residents, just a few days before submitting the deeds and paying the taxes (with the allowance!). I hope the Oficina Liquidadora de Marbella (Tax Office) does not read this (they happen to be 3 floors under us)!
  • A Bowry Says:

    My husband has just died and we have a small property in Spain 79,000, I have been told that I have to pay inheritance tax on his half 40% of 40,000 is 40% the correct amount on this purchase price of my apartment Please confirm there is so much to deal with here and in Spain it makes your head spin thank you
  • aflores Says:

    Dear Madam, I have never heard of anyone being hit with a 40% tax bill, certainly not at the levels of asset value you are mentioning. You are more likely in a single digit %, and your tax is unlikely to exceed 2.000 Euros. If you need further (and objetive) help this is the place to find it!!
  • Susie Says:

    Hello, I recently lost my Mother; her and my Father owned a propety in Catalonia (they are both French non Spanish residents) and after numerous bad advice, we (my Sister, Dad and myself) have found out we needed to file for inheritance tax within 6 months. My sister and myself (both over 21) have both applied for a NIE number but it looks like they will come through too late to make the 6 months deadline. Could you tell me where and how to apply for a deferral to be able to pay for any tax due a little after the deadline and avoid the penalties? Also, I did get contradictory answers regarding the fact that we would be tax liable. The Catrastal value is around €17,000.00 with a market value of around €140,000.00 and only €1,000.00 in a joint account. I am really confused as per what is due based on which value? I apologize for being so long, this is the last blow to a long two years of sad and stressful events and I am completely out of my depth as I do not speak Spanish/Catalan. Many thanks, Susie W.
  • Sue fletch Says:

    Hi there, I'm looking for advice for my mum. My parents who are both British own a villa in Alemeria worth around 180,000Euros, owned in joint names and both have spainish wills leaving their half to the other if one dies. My father died a month ago so mum gets his half, the death is still so raw but people keep upsetting my mum by saying she will have to pay thousands and thousands of pounds in diffent taxes! This is really worrying her. Could you let me know if this is true and what % she is looking at. Thank you so much x
  • Sue fletch Says:

    Hi there again!! I forgot to say the villa is a holiday home.
  • Neil Says:

    My wife and I jointly own a holiday home on the Costa Del sol valued at some €250,000 it has no mortgage. I understand if either of us were to die the survivor would have to pay spanish IHT as there is no exemption between spouses in Spain. We are both 55 years of age. Roughly how much IHT would we be liable for.
  • JDW Says:

    I have just found this website and how refreshing it is to find a legal firm in Spain that offers sound advice on tax matters. I for one have been under the impression that IHT was killer and the Hacienda would leave either my wife or I destitute on eithers death. I have added you to my favourites and know where to come if the need arises. Well done Belegal!
  • aflores Says:

    My wife and I jointly own a holiday home on the Costa Del sol valued at some €250,000 it has no mortgage. I understand if either of us were to die the survivor would have to pay spanish IHT as there is no exemption between spouses in Spain. We are both 55 years of age. Roughly how much IHT would we be liable for. Hello Neil, You would be looking at approximately 18% of the value of the share being transferred. This calculation is based on the value you have given, not the "fiscal value".
  • aflores Says:

    Hi there, I'm looking for advice for my mum. My parents who are both British own a villa in Alemeria worth around 180,000Euros, owned in joint names and both have spainish wills leaving their half to the other if one dies. My father died a month ago so mum gets his half, the death is still so raw but people keep upsetting my mum by saying she will have to pay thousands and thousands of pounds in diffent taxes! This is really worrying her. Could you let me know if this is true and what % she is looking at. Thank you so much x Hi Sue, You are looking at around 16% of the share inherited, according to the approved sliding scale. This is taking into account the value of the property you have provided to me, as opposed to the "fiscal" value, which may vary.
  • GCD Says:

    Dear Sir, My father died recently, he did not own any property in UK ( his male partner did) - he did have a property in Palma Mallorca. He has left a will in UK and in Palma, Mallorca leaving everything to his male partner - do my siblings and myself have any claim to a share to his Spanish estate??
  • JFW Says:

    Dear Sirs My husband and I are moving to the Alicante region of Spain next year,2011. We will both be 60, below the UK retiring age. We have already bought an apartment in Spain for €105,000.00 and will be selling our house in the UK which is valued around £16,000.00. We got an interest free loan from my brother-in-law for £120,000.00 which will be paid back on the sale of our house. I would like to know if we will have to pay CGT on the difference between the price of the properties and the money we hae managed to save, which took a lot of hard work, and do not want it to go all on tax! I have also read about inhertance tax and wealth tax and it has put the fear of death into me at what we and our children, on our deaths, might have to pay. I do not want this to be hanging over us and spoil our retirment. Many thanks.
  • JEL Says:

    I am a resident of Spain and own my property outright. I have made a Spanish Will through a solicitor. I have recently heard from another source that my two sons who are the only inheritors of my estate and both live in UK are required to obtain an NIE Number because they are the inheritors. If this is so, can they do it before I die or do they only need to when progressing the inheritence? Many thanks
  • lawbird Says:

    Dear JEL, They can obtain it at any time. The NIE number is a foreigner registration number which IDs a non-spanish national living or having any type of interests in Spain. They will need to have this number at the time of distribution of your estate, however the solicitor in charge of the inheritance proceedings will probably obtain this on their behalf when it becomes necessary. Kind regards,
  • Jess Says:

    Hi there, i would love some advice if at all possible. My grandfather passed away this year, he left his half of the property to me, my grandmother owns the other half. I obviously am having trouble trying to raise the funds to pay for the tax. I lived with him prior to his death and I am a listed resident at this address at the town hall. Are there any excemptions? I need to pay tax on about 75.000 euros. Thank you
  • lawbird Says:

    Dear Jess, Your query has been dealt with on this other thread: Kind regards,
  • Apple Says:

    One of my distant relative on my father's side was killed in the Tsunami in 2004. I just received a letter informing us that he have inherit a large sum of money. There are no mention of houses etc since it has been over 6 years that no one has claimed anything. What am I to expect in regards to spanish taxes ect. I do have the lawyer that was his personal lawyer but never mentioned anything about houses etc...please advise? I also forgot to mentioned that I live in Canada and are distant relatave lived in spain for 13 years with no will. We are both foreign nationals. what I am to expect if I decide to move forward witht his.
  • ifv Says:

    Hello Apple. Please note that what you mention is an old scam which has been going on for several years. See this thread for further information. Regards
  • apple Says:

    Interesting enough is that they are not asking for any money and that they are going to pay for this themselves. what are the chances of this?
  • ifv Says:

    what are the chances of this? None. Period. Interesting enough is that they are not asking for any money and that they are going to pay for this themselves. Fraudsters bank on greed, and once they've manage to turn you into a true believer, they will extract from you whatever they want. I've seen it many times. Try googling the scam involving the 2004 Tsunami. Do not touch with a barge pole!
  • Laraine Says:

    I wonder if you can help. My great aunt passed away in December naming myself, my brothers and three cousins in her spanish will. The estate consists of an apartment. Can you give me an indication of what costs we may be liable for upfront? Do we have to pay all the costs before the inheritance?
  • Laraine Says:

    Sorry I should mention that my great aunt was married to my great uncle who was our blood relative but died about 8 years ago. Also we are all resident in the UK. Thanks
  • Tony Says:

    Is there any way to find out if someone is a qualified lawyer in Spain. My father passed away last year and his legal reprasentative does not seem able to tell us how much our IHT will be! All she says is that it is worked out in Madrid.
  • lawbird Says:

    Hi Tony, Ask her for the Bar Association she is registered with and her registration details. You can then contact the Bar Association in question and they will confirm whether she is registered or not. Alternatively, you can visit the following link where you will find a list of all legal professionals registered in Spain: Kind regards,
  • Norman Says:

    Please can you confirm what figure Spanish Inheritance Tax is is paid. Is it the market value of the property or the Valor Cadastral? Many thanks
  • lawbird Says:

    Hi, Its the "valor minimo fiscal" which is similar to the cadastral value. That is, a value that is estimated by the tax authorities, which is not necessarily the same as the market value of the property (given the fluctuating and recent sudden changes in property prices). Kind regards,
  • lawbird Says:

    Dear Laraine, Each heir would be liable to pay IHT tax on the share of property they receive and this has to be paid before the property can be registered into your names. In addition, you would also be liable to pay legal fees, notary fees and registration fees, as well as any debts belonging to the estate. Without looking at the corresponding documentation and no indication of the value of the property and other assets involved, I am afraid it is impossible to provide you with an estimate of your liability. If you are looking to instruct a solicitor in your matter, please do not hesitate to contact us via email at info @ and we could discuss your matter further and with reference to all the documentation in question. Kind regards,
  • Liz Says:

    We are residents of spain, we own our house in joint names, we are not married. We have made a joint spanish will. If the male dies we assume the house will pass to the female and vis a versa. How does inheritence tax work for an unmarried couple. Do we have to get a letter from one of the male children for the female partner to stay in the house. Would it be better financially to marry.
  • Patricia Says:

    Dear Sir/Madam, Welcome to our forum. There are no differences between married or unmarried if you have a property in joint names. In response to your specific quesiton, the female would not need a letter written from the male inheritor to remain in the property, as she owns the 50%. When selling the property, the income generated would be distributed to all property owners depending on the percentage of their ownership. However, if one of the co-owners passed away and the children/inheritors ( In Spain, the children have the right to inherit part of the property ) wanted to sell without the consent of the living owner they could force him/her to sell in public auction. The ideal situation is that you come to an agreement before involving the courts. In the event that the British will states that only one party inherits the other half of the property, you would be charged the tax payment applicable as having acquired that half, as per the national laws of the deceased. If the children are also inheriting, they also have to pay the property transfer taxes, on the same way as the living co-owner. Regards,
  • Liz Says:

    Thank you Patricia for your response and coming back to me so quickly. This information has been very helpful. Would I be correct in thinking that in the event of one co-owners death if the remaining co-owner wished to move house/had to financially move to a smaller property, would only be able to take 50% of the price of the property, the remaining 50% would go at that time to the children/inheritors or do the children/inheritors only inherit on the deather of both co-owners? Could either co-owner after the death of the other co-owner change the will regarding the children/inheritors. Regards Liz
  • Unregistered Says:

    my father died in spain his will has been split 5 ways,son, daughter and 3 nieces plz tell me what percentage of tax my brother and i will pay.
  • patti Says:

    Hi my cousin recently passed away and left me his apartment in Majorca. It is valued at 220,000 euros and there is also a car with a value of 2,000 euros. Can you please let me know how long I have before I have to pay the inheritance tax and also how much it is likely to be. Many thanks
  • Patricia Says:

    Hello Liz, Sorry for the late reply. In order to answer your question and confirm that the 50% of the value of property would be inherited by the children/inheritors upon sale, you need to check what has been declared in the Spanish will. You can e-mail it to me privately if you would like us to interpret it should you have doubts. As per you questions related to the possibility to change the will upon the co-owner´s death, it is not possible. Best Regards,
  • Marta Says:

    Hi Patti, In principle you have six months in order to pay inheritance tax. With regards to the approximate amount, please let us know if there is a mortgage on the property you are looking to inherit.
  • Patti Says:

    Hi Marta many thanks for your answer, there is no outstanding mortgage on the property. Can you also confirm that the property will not be released to me until I have paid the inheritance tax.
  • Rachael Says:

    Hello, I wonder if someone can offer me some advice please. My parents brought a property in Valencia, unfortunately my dad died in 2006. The property was on the market at the time of his death for €300,000 euros. They have never lived in spain (dad died before they had the chance) . Mum has not dealt with any of the legal side of the property other than notifying the bank and notary of dads death, a solicitor has informed her that she owes £40,000 in death duties. The property has been on the market since dad died and is now valued at €100,000, from what i have read death duties are calculated on the value of the property at the time of death. The spanish bank have also started proceedings as she hasnt been able to afford the mortgage so they want the outstanding €93,000 back. Shes in a real mess and I am unsure of how to proceed, any advice appreciated, many thanks.
  • Patricia Says:

    Hello Rachael, I am very sorry that your mother is suffering from these hard times. In the event that the mortgage has not been paid accordingly, the bank can start a mortgage execution process, so I am afraid that there is not much that can be done but pay the mortgage if you do not want to lose the property. She can try to negotiate with the bank the mortgage payments in order to avoid losing the property. As per the inheritance tax due since your father´s death, if your solicitor has confirmed the amount, this should be paid as well. If you are unable to pay it, you will be fined by the Spanish tax authorities, and tin the event that you managed to sell the property, the tax office would retain the due taxes plus interests accumulated. I hope I have helped clarify the situation. Regards,
  • Rachael Says:

    Thanks for your reply, its helped to clarify some points for me. I have found her a solicitor so hopefully he can help us sort through what needs to be done. Many thanks.
  • Marta Says:

    Hi Marta many thanks for your answer, there is no outstanding mortgage on the property. Can you also confirm that the property will not be released to me until I have paid the inheritance tax. Hi Patti, apologies for the late reply. If you are a non resident in Spain, you are not planning to live in the property as your main place of residence and your cousin passed away less than 4 years and 6 months ago, then I am afraid that you will have to pay in the region of 30,000 EUR. We are talking about group 4 and this group has no reductions.
  • lkj Says:

    my grandfather passed in jan 2010, he owned an apartment in lanzarote valued at 100000 euro, my uncle and i are the beneficiaries of an equal share. we both paid our taxes i think around 10%, my grandfather was a uk resident but lived in canaries most of the time, neither my uncle nor i are spanish residents regards and thanks in advance
  • Patricia Says:

    Dear Sir, In Spain, when an individual inherits property, the inheritance tax applicable must be paid by the inheritor/s according to their share in the inheritance, being there many circumstances to be taken into consideration in order to make the exact calculation of the amount such as province where the assets are, current value of the assets , age of the inheritors, and terms of the will. In your message you are indicating you have paid 10% in inheritance tax. Should you have any concerns about the amount paid for the inheritance tax, I advise you to contact an expert solicitor, who will request certain documents from your side so they can check it for you. Best Regards,
  • Frank Says:

    Hi, I and my partner moved from uk and have lived here in Tenerife now for nearly five and a half years.We have a bungalow in our joint names and we also have two apartments in a holiday complex and have made wills in Tenerife....I wish to know, as I have read from a lady inquiring with you on this matter whether the surviving partner will be left with a huge IHT bill or whether you would say not as we are resident here and have been for over five years now and have the residencia paperwork stamped by the police department. We obviously pay all taxes we are liable for in Tenerife, but, would appreciate your comments on our situation and whether we need to make further arrangements to reduce any IHT bills and whether we need to contact you....
  • Patricia Says:

    Dear Frank, Apologies for this late reply. There are many aspects to be considered in reference to IHT to be paid after the demise of one of the spouses. If the spouse that inherits has fiscal residency in the Canary Islands and the inherited property will be the principal residence of the beneficiary, the tax exemption is 95%, which practically reduces tax to 0 %, unless the inherited asset is valued in millions of euros. To make a calculation on the estimated inheritance tax, it is necessary to know: - Number of assets in Spain - If the beneficiary will live in the inherited property - Actual value of the assets - Parenthood Kind regards,
  • sarah Says:

    I am very confused, I lost my dad last year and mum this year, they both lived in spain, i am the only inheritor, they have a spanish will and i have taken all the documents ive found to the notory in spain, What kind of percentage will i have to pay in taxes as they were residents for over 5 yrs but i am not, the house has still not sold as yet so will i need to find thousands of pounds to pay death duties? I was told a certain tax law changed on june 1st 2011 is this correct?
  • Patricia Says:

    Hello Sarah, Welcome to the belegal forum. Being a non resident heir, the amount of the inheritance tax to be paid will depend on the value of the inherited property and if there is a mortgage on it or not. As per the residency issue, even if your parents were residents, the heir in this case is a non resident. If you became a resident, put he supplies in your name and registered at the town hall, you would not pay inheritance tax if the property was to be your usual dwelling. We can offer our legal assistance in the process to transfer estate to heirs; please read more about the process here: Also, please feel free to read the following article written by one of the lawyers at the Lawbird team about the Spanish tax system, there are various examples and scenarios so you can have a clear picture on how the process is and the taxes you may expect to pay. Regards,
  • Milly Brighton Says:

    Hello, My house has been in my fathers name since 1988. He has made a spanish will leaving the house to myself & my husband. The catastral value is 83000 euros but the market value would be about 375000. My husband has been registered autonomo to this address since 1988 & we,ve been told this would make a difference re inheritance tax as its obvious its our primary residence. My husband is now in baja. Regards milly
  • Thelma Says:

    My partner died two years ago all taxes and debts have been paid by me and the villa is now in my name, the property still has a mortgage which is still in both names, my problem is that the mortgage still has over 3 years to run and I do not now have enough money to pay the monthly fee, I am contesting his UK will but probate has not yet been granted, so my question is:- as his name is still on the mortgage can I (or the Spanish bank) claim payment from the UK estate to pay the mortgage.
  • Patricia Says:

    Hello Thelma, In order to give an exact answer, we would need to know under which conditions the inheritance in Spain was accepted so you had the property transferred into your name. If you accepted it in the plain and simple way ( without inventory benefit ), you are accepting not only the assets, but also the debts and charges attached to them; in that case, we understand that you also accepted the responsibility to pay the mortgage and therefore you would not be in your right to claim that the mortgage repayments are covered by the remaining estate of the deceased person in UK, unless you are declared a heir as per the UK probate, and inherit any asset that your partner owned there, so you could have disposition of those assets that would finally help pay the mortgage. Regards,
  • Keith Harding Says:

    My wife has just died, we are resident in England. We have a property in Tenerife. She has a Spanish will leaving the propery to me or my sons. Her Spanish estate is worth less than 70,000 euros. What are my next steps and what is the likely tax liability? Thank you.
  • Emma Says:

    Hi I wonder if you could assist me my father died in England in leaving an English will he did not have a Spanish will. He has a property in Spain that he half owned with my step mother. She is now trying to sell the property and inherit in full as per the English will. I understand that under Spanish Law, my fathers children inherit a percentage of the property. Can our step-mother legally sell the property and pocket the proceeds without our approval ??
  • Ofelia Says:

    Hi, I live in the United States and attained Spanish Citizenship by applying under the rights that my father was born in Spain. I own properties and have other business related wealth; all in the United States. My question is do I have to have a will in Spain? Would I owe inheritance tax in Spain? Would my trust and pour over will in the USA suffice to assign all my worldly goods to my wife?, I am married to her in the State of Massachusetts where Gay marriages are legal. Thank you so much in advance for you advice and guidance.
  • Patricia Says:

    Hello Ofelia, You mention that you have Spanish nationality, residing in the US. However, as you are an American resident and all your assets are in the USA, we recommend you to ask an American attorney if the American Law applies to those assets in USA, considering that even if your nationality is Spanish, you have no assets in Spain. Initially, in the event that you passed away in Spain, the Spanish Law would apply in relation to the legitimate interests and distribution of the assets. However, again, you still need to ask an American Attorney if a will made in Spain would be valid in the States. In any case, making a will in Spain in relation to your US assets is absolutely possible. If there were any taxes to be paid for Inheritance tax, it would definitely be paid in the States, and not Spain. The American attorney will be able to let you know what Law would be applied on your assets in the event you passed away in the States; That is, if your National Law ( Spanish) or the American one would be observed. Regards,
  • Sharon Says:

    Hi there, my father passed away in October 2011, I would be grateful if you could advise me whether my Mother has to personally go to Spain to deal with my late fathers 50% of their property in Torrevieja. She has been told that she has only 6 months after his death to deal with the IHT and to transfer the property to sole ownership if she fails to do this the property cannot be sold for 7 years. Also how much tax is she required to pay if the property is valued at 70,000 euros. Kind regards. Sharon.
  • Dawn. Says:

    Hi, I have been living in Spain for the last 12 year, and I used to look after an old man for 10 year. He died 3 weeks ago. And in his Spanish will he has left me 140,000 euros. I'm told I have to pay 40,000 IHT. Would that be about right. And is it true I have to find this 40,000 before I can receive my inheritance. And how long would I have to wait. Kind Regards. Dawn.
  • Patrick Says:

    Can you help, my sister died 12mioths ago in Las palmas, without a will, she was residnt for 15 tears, her only daughter inherits 50% and her father 50%. he has now died and left 8.5 % of his share to a cousin. The daughter wishes to sell the two properties , can the cousin stop the daughter from selling if she does not want to. Accepting that she will recieve the appropiate value against the proprtion left.
  • Patricia Says:

    Hello Dawn, It is certainly true that you have to make payment of the due IHT before you inherit that amount. I am unable to confirm if the amount you have been quoted is correct as I would require to check the related documentation first. However, it could actually be a correct figure. Please feel free to send me more details on the matter and a copy of the will by email on Patricia at so I can advise further. Best Regards,
  • hetty Says:

    dear lawbird lawyer, what can i do if i am not able to pay the iht? i have just inherited 25% of a property valued at one million euros but i have no assets or available funds. also i had a friend pass away fourmonths ago and he told me he was leaving something in his will for me. he didnt tell me what exactly.and i havent heard from any lawyer or notary. how can i find out what he left me? thank you
  • Cecilia Says:

    Hello. My mother passed away in January. My father is still alive and living in Spain. We have had to pay 6,500 euros for the IHT as myself and my two brothers are not Spanish residents. We have been told that we could either receive the inheritance money or just let it roll over for my father. I don't know what to do.
  • Louise Buttenschøn Says:

    Dear Sirs My parentes have both died within two months and left my sister, brother and I an erstatte/house in Torremolinos. We are all danish residents. We are the only heirs/beneficernes and theres is no testament. The value of the house is apx. 250.000 € and theres no depth in the house or any other complcations. We have contacted a lawer in Spain and asked for the lawers fee. The price is 3.500 € including 12-15 workhours plus 6 - 8 secretary hours incl. tax. Then there"s an additional Price of 3.000. € for all occicial fees and paynents. As we have never had to hire a lawer abord before - we have no idea if this fee i reasonable or not? I know it's difficoult, but can you PLEASE give us an estimate of the general lawers fee for this inherrentenc / exchange of erstatte ? We are really not sure of the Price we have been given!? Think you very much Sincerament Louise
  • aflores Says:

    Hello Louise, The quote you have been given seems appropriate, but the supplement does not seem clear to me. At the same time, there is not mention of taxes, and how these may have been calculated. I also believe that the hour count is incorrect because this work would not attract 24 hours of work, even though the fee may be correct (it would take into account the professional responsibility of drafting up the inheritance deeds correctly, calculating the taxes accordingly (this is important as savings can be achieved here) and duly registering the property with the Land Registry. Finally, the fee quoted can be improved, considering the value of the property. You can write to me directly if you wish, and I will clarify matters. Dear Sirs My parentes have both died within two months and left my sister, brother and I an erstatte/house in Torremolinos. We are all danish residents. We are the only heirs/beneficernes and theres is no testament. The value of the house is apx. 250.000 € and theres no depth in the house or any other complcations. We have contacted a lawer in Spain and asked for the lawers fee. The price is 3.500 € including 12-15 workhours plus 6 - 8 secretary hours incl. tax. Then there"s an additional Price of 3.000. € for all occicial fees and paynents. As we have never had to hire a lawer abord before - we have no idea if this fee i reasonable or not? I know it's difficoult, but can you PLEASE give us an estimate of the general lawers fee for this inherrentenc / exchange of erstatte ? We are really not sure of the Price we have been given!? Think you very much Sincerament Louise
  • Linda Says:

    Hi I am resident in Spain and last year was left a share in my mothers house, this was sold and the solictor acting for the family sent my share to my bank in Spain in July 2012. No tax was liable in the Uk . My question is how much tax must l pay in Spain as my family in the uk paid none but l am under the impression as l am resident in Spain l am liable for Tax here. Also do l declare it next year?
  • Mo Jean Buttivant Says:

    Hi there, I have just made a Spainish Will making my Sister the sole beneficary. I am a Spanish Resident living in Mallorca some 10 years now, I am divorced (UK)and have no children. I am receiving conflicting information re the inheritance tax my sister will have to pay should she sell my property after my death. She lives in the UK. Can you please resolve this confilicating information. Also should my sister die before me then my property will go to her two children who also live in the uk. Can you please advise what they would have to pay to receive my property. They are both adults. thridly, would it be better if I sold my property to my sister prior to my death and if so what would she have to do and pay. Many thanks. PS: I have read lots of your helpful reviews here and it is so refreshing to get some staid answers. Mo Jean Buttivant.
  • Mo Jean Buttivant Says:

    PS to my note above. My property let say it is worth 200,000 euros which may help for the sliding scale that my sister or my niece and nephew may have to pay in inheritance tax. Also would any of the above relatives have to pay a tax in the UK as they are all residents there ? Thank you. Mo jean
  • Kelly Says:

    Hi I am just asking for advice about inheritance tax as my dad died in January & as far as we know left a Spanish will leaving everything to me. What sort of inheritance tax would I pay on an apartment worth approx £60,000? I am a little confused by it all. Thank you
  • Patricia Says:

    Hello Kelly, You will be liable for the corresponding IHT on the property you are inheriting in Spain. The final figure depends on many variables, such as the particular province where the testator resides, number and age of heirs, grade of family relationship, whether the property is a primary residence or not, residency status of testator, residency status of the heirs, value of assets, etc. If you read the following articles written by one of the lawyers at the Lawbird team about the Spanish tax system and other useful information about Inheritance Law in Spain, you will find various examples and scenarios so you can have a clear picture on how the process is and the taxes you may expect to pay. Spanish Inheritance Tax: Advantages of Making a Will in Spain Applicable Inheritance Law to Estate Located in Spain Spanish Inheritance Tax: How much is it? Regards,
  • Gillian Says:

    Hi My husband inherited a property in Spain from his mother, both are french, his mother left the property to both himself and his sister in equal parts and the use of the property to her partner at the time they were not married. They are no longer liable for tax as she died more than 5 years ago. but his sister is refusing to validate the will and the property is falling into disrepair as neither she or his mothers partner have the funds to pay the yealry taxes or the upkeep of the house and is is empty, we have paid some monies for work that needs to be done and local taxes. Can we force his sister to sign the will, or what will happen to the property as no one has lived in it since his mother died. many thanks
  • taotaoali Says:

    Could you give her a rough idea of costs incurred to take dads name off the deeds and to make a spanish will, leaving the property to myself and my sister and all taxes involved in this?
  • Marta Says:

    Hello Taotaoali, The typical costs will be as follows: 1. Stamp Duty: 1.5% of the property value (it is important that the right value is established on the deeds, by reference to the previously declared value and the current “fiscal value”, as established by the Tax Office). 2. Notary fees: Approximately 1,200 Euros 3. Land registry fees: Approximately 1,100 Euros 4. Legal fees : depending on the law firm you choose. If you require any other information regarding this matter please feel free to contact me directly.
  • Patricia Says:

    Hello Gillian, This query cannot be replied as a general answer as there are various factors to be considered; If the will was made in Spain or abroad; nationality and marital status of the parties involved and if an inheritance process has taken place in another country. Therefore, we kindly request you to provide with more information. For than end, we recommend you to contact us by email. Regards,
  • Emily Says:

    Hi my mum and dad own a house in Murcia. Sadly my mum has passed away suddenly with out writing a Spanish will. My parents were not married and own a property in England and have a English will for that property. What will happen to the Spanish property now? Thank you
  • Sam Says:

    My father has past away the family home was left to three sons. Do we all pay inheritance tax or is there one off payment
  • 1amb74 Says:

    Hi. My brother and I are in the process of signing our grandads half of his estate over to ourselves until we were hit with a massive IHT bill. This is because we are not direct descendants of our grandfather but step-grandchildren. We are liable to inherited 50% of the estate which has been valued at 145,000€ and each need to pay 21,350€ before we can inherit our share. We have been given 5 weeks to pay this which is horrendous and even after those 5 weeeks will struggle to raise the total of 37,324€ between us not including solicitors fees. Do we have anymore options? Many thanks.
Post your comments below:
  Or login to the forums
Note: Anonymous posts need approval before they are displayed.

Featured Links: Apply for your Spanish NIE Number
© 1999-2024 Professional Ideas SL All Rigths Reserved - Copyright Notice    - Interesting Resources | Glossary | Terms of Use | Contact Information Contact Details    
Professional Ideas SL CIF: B92930627 - Tomo: 4505 - Libro 3414 - Folio 196 - Hoja MA-97033