In the event that you have received an inheritance in Spain, even if you are a non-resident, you must submit a self-assessment of the Inheritance and Gift Tax to the Tax Agency. The self-assessment tax form is called 650. The Autonomous Community of Andalusia has recently established a reduction in the tax base for spouses and direct relatives for inheritances, for an amount of up to one million euros.
Who can benefit from this reduction in the tax base for inheritances in Spain? In order to benefit from this reduction, the following conditions must be met by the heirs:
1. To be related as follows to the deceased person:
• Descendants or adopted, under 21 years of age.
• Descendants or adopted, 21 years or older. Spouses, ascendants or adopters.
The following groups are equated to the above:
• De facto couples registered in the Register of De facto Partners of the Autonomous Community of Andalusia and de facto couples registered in any register similar to the register of de facto partners of Andalusia, of other public administrations.
• Persons subject to permanent family foster care and guardianship for adoption purposes will be equated to adoptees.
• People who carry out permanent family foster care and custody for adoption purposes will be equated to adopters.
2. That the previous wealth of the heir in Spain is equal to or does not exceed 1,000,000 euros.
The taxable base of the Inheritance Tax is constituted by the net value of the individual acquisition of each heir.
Bonus on inter vivos donations. Donations in Spain
In the case of inter vivos donations, the taxpayers of the Inheritance and Gift Tax in which the conditions of kinship or their aforementioned comparisons are met, will have a 99% discount on the tax quota derived from “inter vivos” donations, provided that it is formalised in a public document within the term of the presentation of the tax and the origin of the funds is justified in the cases where the donation is metallic, to be counted from the day following that on which the donation inter vivos will take place.
If you wish to obtain more information about the acceptance of your inheritance in Spain, do not hesitate to contact us.