How is inheritance tax calculated in Spain?
To estimate how much inheritance tax you or your heirs might pay in the event of death, it is first necessary to calculate how much the inheritance would be worth and then make the deductions allowed by law. The amount an heir is allowed to deduct depends on his relation to the deceased. Those with the highest deductions are children under the age of 21 who can subtract anywhere between approximately 12,200 and 42,000 euros depending on their age. In the next category are children over 21, spouses and parents, who are allowed around 12,200 euros. Relatives such as siblings, aunts, uncles and cousins receive the substantially smaller deduction of 6,100 euros, while in the last category more distant relatives and non-family heirs get no deduction at all. If you feel this penalises non-family heirs, you’re right. And that is exactly how the system has been designed to work – in favour of families looking out for their own.
Spanish inheritance law, which is designed to protect the family structure, requires that children inherit most of their parents’ estate. However, foreigners are often able to get around these requirements, bequeathing their assets as they see fit. To estimate how much inheritance tax you or your heirs might pay in the event of death, it is first necessary to calculate how much the inheritance would be worth and then make the deductions allowed by law. The amount an heir is allowed to deduct depends o?n his relation to the deceased. Those with the highest deductions are children under the age of 21 who can subtract anywhere between approximately 12,200 and 42,000 euros depending o?n their age. In the next category are children over 21, spouses and parents, who are allowed around 12,200 euros.
