We already posted back in November about the changes to the Inheritance Tax laws in Andalucia, but here is an additional update.
Who will be liable to pay inheritance tax in Andalucia under the new rules?
Heir and ‘legates’ will have to pay inheritance tax, if they meet the relevant thresholds. The difference between what we call ‘heirs’ and ‘legates’ is that the former will be entitled to the estate, whereas the latter, the legate, has been given a prior right to receives items from the estate, even though they are not heirs.
As we mentioned in our previous post, from 2018 the tax exemption for paying inheritance tax increased from €250,000 to €1,000,000 (per heir).
What are the rules for calculating whether or not the beneficiary will need to pay inheritance tax in Andalucia?
If the beneficiary is classified as a legate, heir and is a child, parent or spouse of the deceased and their individual assets are no greater than €1,000,000. If it happens that the beneficiary has assets over €1,000,000 then the inheritance tax payable would be the difference between €1,000,000 and the value of the estate.
If you have any questions about inheritance tax, please get in touch for more advice.