What are the hidden taxes?
Inheritance tax can be a problem if not planned for, especially as the tax can apply on worldwide assets, often with unforeseen and undesirable results. Moreover, the architecture of the tax system in Spain is distinct to that of the UK. Spouses pay Inheritance Tax AND the tax falls on the beneficiary not on the donor. It is also highly advisable to write a Spanish will. An annual wealth tax is applied on a sliding scale, starting at 0.2% on assets up to the first €167,129 and rises through various bands to 2.5% on assets over €10,695,996. This tax is assessable per household on the value of your worldwide assets.
