Inheritance tax
#1
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Joined: Mar 2011
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Inheritance tax
What happens when your Mother in the UK dies and leaves you money in her will ? I am a Spanish resident living in Malaga . There is no tax to pay in the UK as it is below the threshold .Any ideas on what the tax liability will be here ?
#2
Re: Inheritance tax
Under the State rules, you will get an allowance of €16k and pay tax on the rest.
However, if you have lived in Andalucia for more than 5 years, then you may qualify for additional benefits. If the amount of the inheritance is less than €175k it will be exempt.
This is the link to the Junta website.
Impuesto sobre Sucesiones y Donaciones - Consejería de Hacienda y Administración Pública
The actual tax rates are computed from a number of different tax bands. The rates are shown on that site if you look at the bottom for "Tarifa del impuesto. Vigente desde 1 de enero de 2012"
However, if you have lived in Andalucia for more than 5 years, then you may qualify for additional benefits. If the amount of the inheritance is less than €175k it will be exempt.
This is the link to the Junta website.
Impuesto sobre Sucesiones y Donaciones - Consejería de Hacienda y Administración Pública
The actual tax rates are computed from a number of different tax bands. The rates are shown on that site if you look at the bottom for "Tarifa del impuesto. Vigente desde 1 de enero de 2012"
#3
Re: Inheritance tax
Or vary the will, which you have two years after the death to make the amendment, to leave the cash say to the next non Spanish-resident generation. That way you never inherit a sou but the next generation might be generous at Christmas and birthdays say €9996 generous as long as their windfall lasts!