National or regional inheritance law in Spain
SPANISH INHERITANCE TAX. NATIONAL OR REGIONAL LAW. The collection of the Spanish Inheritance tax and the right to produce additional legislation to the National Inheritance law in Spain have been transferred to the different Regional Inland Revenue’s as per law 21/2001 of 27th December. As per this law, each individual regional Inland Revenue could establish:
Published on: Mar 3, 2016
Transcripts - National or regional inheritance law in Spain
National or regional law
SPANISH INHERITANCE TAX. NATIONAL OR
The collection of the Spanish Inheritance tax and the right
to produce additional legislation to the National
Inheritance law in Spain have been transferred to the
different Regional Inland Revenue’s as per law 21/2001 of
27th December. As per this law, each individual regional
Inland Revenue could establish:
1)Additional deductions as to those already established by
Spanish National Inheritance law.
2)Increase or decrease the corresponding Inheritance Tax
Scale in Spain.
3)Increase or decrease the coefficients applicable to the
pre-existing wealth of the heir.
4)Deductions or benefits to the Inheritance tax quota.
5)Management and collection of the Inheritance tax in
As a conclusion, the multi-lingual registered lawyers,
accountants and tax advisers of Arcos & Lamers
Asociados, experts on Inheritance procedures in Spain and
Spanish Inheritance tax, can state that being the heir non
fiscal resident in Spain, the Spanish Inheritance tax law
applicable would be the Spanish national law. For heir/s
Tax resident in Spain, both national and regional
Inheritance Tax law would be applicable.
PERSONAL OBLIGATION VERSUS ASSET
An Inheritance in Spain would be considered as a personal
obligation or liability for those Spanish Inheritance tax
payers who are considered fiscal resident in Spain. The
assets obligation liability would be applicable for only
those considered as resident.
The above means, in principle, that the non resident in
Spain would settle their inheritance tax calculated on
properties and assets located in Spain only while the Tax
residents in Spain would need, in principle, to declare at
their Spanish Inheritance tax declaration all assets world
wide inherited or otherwise stated in the corresponding
bilateral agreement between the countries.
Nevertheless, the tax payer would be entitled to the
“deduction to avoid double international taxation”
(deducción para evitar la doble imposición internacional)
in the event of having to declare the Inheritance Tax in
Spain by means of a personal obligation (as a fiscal
resident in Spain) having already paid the corresponding
inheritance tax on assets located out of Spain. In this case
the tax payer would be entitled to deduct the smallest from
the following amounts:
A) The Inheritance tax paid out of Spain on properties
and assets located abroad.
B) The average Inheritance tax rate applicable on
properties and assets abroad as if they would be taxed in
Clarification on the above, the tax payer would be entitled
to deduct only the corresponding hypothetic Spanish
amount due although the Inheritance Tax paid out of Spain
is higher. So the deduction to avoid double international
taxation is partially applicable in some cases.
Do not hesitate to contact Arcos & Lamers Asociados,
your leading Spanish law firm experts on Inheritance tax