TAXATION AND MARRIAGE OF COUPLES OF SAME SEX.
Monday, September 28, 2009
Hi all,
I would like to make some comments today about the TAX convenience for couples of same sex that are residents in Spain, to marry according Spanish law, in case they came from countries where the marriage of people of same sex is not allowed or countries like UK, where Government has created an institution very similar to marriage but not exactly the same (in case of UK the Civil Partnership Act of 2004)
Soon after the enforcement of the Spanish Law 13/2005, the Spanish Dirección General de Registro y Notariados, issued a resolution interpreting the new marriage between people of same sex and foreseeing the possibility that foreign people that lived in Spain could marriage under Spanish law, even if they came from countries where this kind of marriage wasn´t allowed.
In case of British people, that had a regulation called Civil Partnership, that was very alike marriage, but it wasn´t called marriage itself, I recommend for the tax purpose I will comment right away, to marry according to Spanish law in case they are Spanish residents, in order to avoid that the Spanish Tax Office could consider that the Spanish opposite to the British Civil Partnership is the “pareja de hecho” and not the marriage.
I would strongly recommend these marriages because:
- Income Tax for residents foresees that couples married can make joint declaration and this kind of declaration is much more tax benevolent than if each member of the couple makes it separately when one of the members of the couple has a normal income, but the other has none or very few income.
- Inheritance Tax: In this tax is where the benefit is much higher. For example:
- Spouses have a reduction on the base of the tax of 16.000 €. If you are not married, your couple is a completely estranger and has no reduction.
- If the habitual dwelling is included in the inheritance, there is a 95% allowance of its value if the heir is (among others) the spouse. The simple couple is not considered
- And some Provinces (like MURCIA) foresee a discount on the final figure to pay for this tax of 99% for some relatives, the spouses included.
So, in my opinion, is much better to do it that living without doing.
Antonio Robles Jara
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