Legal tip 46. Who are the foreigner taxpayers of Spanish Inheritance tax?
Friday, February 20, 2009 @ 8:04 AM
Who are the foreigner taxpayers of Spanish Inheritance tax?
As you know, Inheritance tax in Spain is paid by the beneficiaries. Submission to the tax is due to either personal or real obligation.
If the beneficiary is a Spanish resident:
According to provision 6 of Act 29/1987 on Inheritance and Donation tax, you will be liable in Spain for the acquisition of all the inherited assets regardless the country they are located. The criterion for this submission is personal obligation (personal residency). Taxes paid in a foreign country by similar concept will be deducted according to a rule established in provision 23 of the Spanish Inheritance Tax Act.
If the beneficiary is not a Spanish resident:
According to provision 7 of the Act 29/1987, he will be under Spanish Inheritance tax obligation by real obligation (location of goods), and will have to pay Inheritance tax for those goods and rights located in Spain.
From date of death of the deceased, there is 6 months to pay the inheritance tax return. The forms are 650 and 652.
If you are a resident, it is necessary to have a Tax identification number (NIF).
If you are not a resident, you will need to have a NIE number.
There is no agreement for the avoidance of double Inheritance taxation between Spain and the United Kingdom (we should start preparing one by the way…!).
Restaurant Almdedina in Tarifa. By Chodaboy at Flickr.com