To demonstrate how the tax rates are applied, consider the following example:As stated earlier, the relevant factors when calculating the tax liability that a beneficiary of an estate in Spain will face include tax exemptions, the tax rate and their personal wealth.
Where three children each inherit, after exemptions and charges, an inheritance valued at €45,000 from a parent, to determine the amount of tax payable by each we would calculate as follows:
Up to €39,943.26 the tax payable is €3,734.59
The portion above €39,943.26 (€45,000 – €39,943.26 = €5,056.74) is taxable at 11.9% = €601.75
So, total tax payable by each child is € 3734.59 + € 601.75 = €4,336.34