Different tax rates may apply if the beneficiary is resident in Spain and the deceased has been habitually resident in an autonomous region, such as Madrid or the Balearics, for at least five years before his/her death and in some regions children and spouses can benefit from a 99 per cent reduction in the tax payable.
Regional legislation needs to be considered whenever the deceased or the beneficiaries are residents of one of the Autonomous Communities.
Death is not a disposal for gains tax purposes but the value declared for inheritance tax purposes becomes the a beneficiary’s base value for gains tax purposes.
Please note: The information contained in these pages is given without charge and without responsibility. It is not a substitute for proper professional advice which we shall be happy to give if so instructed.