Do you have to pay inheritance tax if it is your primary residence???

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09 Nov 2009 12:00 AM by joanmalaga Star rating in Costa del Sol. 419 posts Send private message

I have been told that if you pass away and you and your children were using the property as your primary and only residence that inheritance tax for the children is basically nothing.

Can someone please confirm this. 

Thanks,

Joan





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09 Nov 2009 4:19 PM by mariadecastro Star rating in Algeciras (Cadiz). 9419 posts Send private message

mariadecastro´s avatar

Confirmed

And under these conditions is zero, in Andalucia:

http://www.eyeonspain.com/blogs/costaluz/2463/legal-tip-170-4-conditions-to-pay-0-%E2%82%AC-as-iht-in-andalucia.aspx

 

Legal tip 170. 4 conditions to pay 0 € for IHT in Andalucia
26 October 2009 @ 15:21


As expressed in a recent Andalusian decree dated September 2009: the reduction of the taxable amount will be total, which means you will be paying zero as IHT if:


Condition One) Being a resident in Andalucia:


Condition Two) you are, in respect to the deceased:



Group I: A descendant or an adopted children under twenty one.

Group II: A descendant or adopted children of more than twenty one years/old, a spouse, an ascendant or an adopter.




Or assimilated:


a. Domestic partnerships registered within the Register of partners of the Andalusian region. ( regarded as spouses)


b. Persons subject to a permanent or pre-adoptive foster care. ( regarded as adopted)


c. People who make a permanent or pre-adoptive foster care ( regarded as adopters)

 

Condition Three) IHT Taxable amount does not exceed 175,000 euros.


Condition Four) The preexisting patrimony of the taxpayer falls within the first tranche of the scale set out in Article 22 of Act 29/1987 of 18 December. (402.678, 11 €)



The amount of the reduction of the taxable amount will consist of a variable amount whose application determines a payable amount of zero.


Handicapped will pay 0€ if the IHT taxable amount does not exceed 250.000 €.


 



This message was last edited by mariadecastro on 09/11/2009.

_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



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09 Nov 2009 5:05 PM by joanmalaga Star rating in Costa del Sol. 419 posts Send private message

Thank you Maria.  That will be great news for someone i know!

Joan





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