Question- Thanks for a very informative blog, Maria. Since you asked for more questions...
I am newly widowed. I am British, resident in Spain for 16 years, my husband was half Spanish & half British. He came to Spain as British then took out Spanish nationality. We made a will here, leaving everything to each other & the required proportion to our two children. It is being dealt with by the notario at the moment. My husband & I owned our home jointly & lived in it as our family home for 16 years. My question, if you can answer, is what might we expect in terms of taxation & fees?
Thanks so much.
Answer-
We need to obtain the market value of all goods and rights of the inheritance.We will be adding a 3% as household value and adding those goods which were owned by your husband during a year before his death ( this added goods can be removed from the inherited mass if there is a proof of ownership by other person)
Gross inhrited mass is the sum of goods and rights of the inheritance + household value (3%) + added goods.
Charges, debts and deductible expenses are subtracted: charges and debts are not commun, the most frequent deduction is of the expenses of last illness, funeral and burial paid by the heirs.
Gross mass less charges, debts and expenses make the net mass of the inheritance
In your case, I suppose your husband left 2/3 of the inheritance to your children plus bare owmership of the other third. Leaving to you the usufruct of this one third. If there were Life Insurances, the amounts received by heirs and yourself need to be added here. This make the taxable amount of each one of you.
I would need to exactly know the will of your husband and all the goods that make part of the inheritance mass, but intially, please have some guidande below:
There are reductions on the taxable amount out of family relationship:
* spouses and descendants under 21 years/old: 15956,87 €
* Handicapped: 47858,59 € or 150.253,03 depending on handicap level
* Life insurances: for certan relatives and to a limit of 9159,49 €
* Permanent home of the deceased ( 95% for certain relatives with a limit of 122.606,47 €) In Andalucia this reduction is increased till 99%.
* Liquidable amount: Taxable amount less reductions
Whole Tax rate ( I am assuming here the house is in Andalucia):
Liquidable Tax fee Rest liquidable Percentage
amount amount up to
0,00 0,00 7.993,46 7,65
7.993,46 611,50 7.987,45 8,50
15.980,91 1.290,43 7.987,45 9,35
23.968,36 2.037,26 7.987,45 10,20
31.955,81 2.851,98 7.987,45 11,05
39.943,26 3.734,59 7.987,45 11,90
47.930,72 4.685,10 7.987,45 12,75
55.918,17 5.703,50 7.987,45 13,60
63.905,62 6.789,79 7.987,45 14,45
71.893,07 7.943,98 7.987,45 15,30
79.880,52 9.166,06 39.877,15 16,15
119.757,67 15.606,22 39.877,16 18,70
159.634,83 23.063,25 79.754,30 21,25
239.389,13 40.011,04 159.388,41 25,50
398.777,54 80.655,08 398.777,54 29,75
797.555,08 199.291,40 en adelante 34,00
Multiplier coefficient: This tax takes into account the preexisten patrimony of the heir. This coefficients go from 1,0000 to 2,4000.
Final Tax rate: Whole tax rate multiplied by the coefficient. .
Deductions and bonus: Nationally there is a deduction due to international double taxation and a bonus in Ceuta and Melilla
Please feel free to email us if you want an exact calculation of IHT to be paid by everyone of the heirs.
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Abanicos de Sevilla, by Werkmens at Flickr.com