Q. I’m getting told that my inheritance will be taxed at 40 per cent as a non resident. Is this true and how, if possible, can I reduce it?
A. You are not the first (and won’t be the last) to be charged 40 per cent, and there are several companies who offer an illegal tax avoidance service (using a UK company), quoting such figures in their sales pitch. You will find more information on the blog post Inheritance Tax: A Cynical Approach.
Having said this, although a 40 per cent tax liability is possible – it can even go up to 80 per cent in some cases – it is very rare for anyone to pay such a high rate. The average bill in Spain has been 13 per cent over the last three years.
If you read the article Spanish Inheritance Tax: How much is it?, you should get a general idea on how much tax your descendants will have to pay.
The final figure depends on many variables, such as the province you reside in, the number and age of your heirs, your family relationship, whether the property is a primary residence or not, your residency status, the residency status of your heirs and the value of assets.
My recommendation is that you talk to a qualified fiscal advisor before embarking in expensive illegal schemes (that you will soon discover you don’t need).
Contact Antonio at Lawbird Legal Services
Edificio Alfil Floor 4, Ricardo Soriano, 19 – 4B, 29601 Marbella, Malaga (Spain) Phone: +34 952 861890 – firstname.lastname@example.org – www.lawbird.com