Inheritance taxes in Spain can swallow-up a huge percentage of any inheritance and so it is worth planning ahead as carefully as possible to avoid the lion’s share of any legacy winding up in the Spanish government’s coffers.
Of course it may be that investments and purchases have already been made and therefore there remains little to be planned for. In any case we will look at all of the options open to an individual who wishes to minimise the inheritance tax they must pay in Spain.
Ever since the Spanish government devolved responsibility for inheritance taxes to the regional governments, huge steps have been taken to reducing and in many cases eradicating the payment of inheritance taxes.
However, the exemptions granted apply only to those who are resident in the region – often requiring residency for a majority of a period of five years. If residency in any specific region is not established then the ‘State’ approved tax exemptions will apply.