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Inheritance Tax

 
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Inheritance and gift tax is levied on worldwide property passing either by gift or on death to Spanish residents and on Spanish assets gifted to or inherited by non-residents. The residence concept is the same as for personal income tax,i.e. be physically present in Spain for more than 183 days in a calendar year.

Thus, an individual resident in Spain for fiscal purposes is taxed on assets and rights acquired by inheritance or gift, regardless of where the assets or rights are located. If the recipient is not resident in Spain, Inheritance and Gift Tax applies only to assets located in Spain or rights that may be executed in Spain.

This tax falls on the heirs, beneficiaries and donees. Thus, Inheritance Tax must be paid by the legal heir and Gift Tax by the donee.

The taxable amount is calculated by adjusting a basic tax scale of progressive rates with a coefficient that takes into consideration the previous net worth and age of the beneficiary as well as the relationship of the recipient to the deceased.

 

 

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Juan Bertomeu Vallés            Copyright 2004/2008
 

Last Modified :  April 29 2008