Inheritance Tax

Thanks Lobin. 

I should be grateful if you could point me to the Spanish law on that. 

I live in Andalucía. 

For me leaving my assets in Spain to my wife would mean that our home (taking the cadastral value X 1.3.) comes to under 200,000 which my gestor says is level at which IHT is payable.  If that is correct then I can make up the difference to 200,000 with savings. Other assets are in Gib and they could go to my sons who live in UK, tax free.

for Johnzx

El Impuesto sobre Sucesiones y Donaciones se regula con carácter general en la Ley 29/1987, de 18 de diciembre. El Reglamento que lo desarrolla es el Real Decreto 1629/1991, de 8 de noviembre.

 En lo concerniente a las normas autonómicas vigentes en Andalucía, se regulan en los artículos 17 a 22 quater del Decreto Legislativo 1/2009, de 1 de septiembre, por el que se aprueba el Texto Refundido de las disposiciones dictadas por la Comunidad Autónoma de Andalucía en materia de tributos cedidos.

This is copied and pasted from the internet.  Rought translation. " The IHT is regulated in general by Law 29/1987 of Dec. 18.  The Regulations that develop this Law is Royal Decree 1629/1991 of Nov. 8.

For Andalucia, the regional regulations are Art 17 to 22 of Decree Law 1/2009 of Sept. 1"

For Camposol:

If the tax you pay in the UK on assets located there is lower than the tax payable in Spain, you would still get a tax credit for the UK tax but would have the difference up to the Spanish tax in Spain.

What you are saying about Murcia is, of course, possible. For example in Madrid, if the heir is the spouse, the tax payable is reduced by 99%, so in this case perhaps the UK tax is higher.  It really depends on the circumstances and Autonomous Community.  The IHT is one of the taxes that was given by the Central Government to the Autonomous Communities some years ago as a means of giving tax income for their financing and they are the ones that fix the reductions, allowances and credits within their respective territories.

Camposol   Talking of wills etc, Johnzx, I never received a reply to my email to your gestor, asking for clarification that the resident  spouse of someone resident in Spain must pay  IHT on all worldwide assets of the deceased outside Spain. Your gestor seemed to have a different view to all the other legal bodies. Have you heard any more on this?

No I have not and indeed as I asked for advice and received it I have no desire to shop around for more advice.

However, it  did occur to me that as in Spain the person who inherits must pay the tax,  I wonder how Hacienda could act with regard to funds which are not located in Spain, being inherited by people who do not have any connection with Spain ?

But the advice you received is at odds with all the other advice concerning this,  so how can it be correct?

 If someone outside Spain inherits assets outside Spain,  from a person  resident in Spain, then surely, he/ she will not be liable for IHT on them, only the assets within Spain?

Campo   If someone outside Spain inherits assets outside Spain,  from a person  resident in Spain, then surely, he/ she will not be liable for IHT on them, only the assets within Spain?

Sorry but is that not what the advice I received said ?

Quote   She (gestor)  confirmed that IHT (succession tax) only relates to property / assets which are in Spain,

I said,  "but I must say, I have my doubts on that."

In the case of a spouse resident in Spain, receiving assets  from her deceased spouse, also resident in Spain.then of course he/ she would have to pay IHT on the assets outside  Spain.

I think the confusion arose when you wrote that the gestor said no IHT would be payable by  on your account in Gibraltar. In the case of your resident wife , surely she would have to pay, but if the assets on it were received by relatives out side Spain, then surely, no they wouldn't? Or have I misunderstood you?

Or have I misunderstood you?

No you have not, as I did not actually say anything.  I quoted my gestor.

What the gestor said is not the same as what I said. She said IHT was  not payable on the account in Gibraltar, which I assumed was your wife's inheritance, and if so,  IHT WOULD be payable on it .