The exemptions available at a national level may be summarised as follows:
Guide to Groups
In Spain a beneficiary is assigned a category or Group depending on their relationship with the deceased, as per the following table:
Group I Children, including adopted children, under the age of 21
Group II All other children, spouses and parents
Group III Close relatives such as brothers and sisters, grandparents, aunts/uncles
Group IV More distant relatives
In addition to the above exemptions, should any beneficiary be disabled, further exemptions ranging between €47,858.59 and €150,253.03 depending on the level of disability.
Life Insurance Policies
If the deceased took out a life insurance policy in favour of a beneficiary there is an exemption up to the value of €9,159.49 where the beneficiary is a spouse, child or parent.
Inheritance of the Family Home
An exemption also exists for tax payable on the permanent or habitual residence. The definition of habitual residence is the same as that used in Spanish Income Tax legislation and presupposes time having been spent living in the property.
The classification of a property as the family home will be assisted through the presentation of supporting evidence such as tax returns with the property listed as the habitual address of the taxpayer.
This exemption applies equally to a spouse, children and parents of the deceased at a rate of 95% of the value of their inherited portion of the property up to a maximum value of €122,606.47 each. An important proviso exists in that the property may not be sold for a period of 10 years after the inheritance.
Other relatives further removed, may also benefit from this exemption but must have been living with the deceased in the property for a period of at least two years prior to the date of death.