Inheritance Tax Changes in Andalusia 2017

In August 2016, the Andalusia tax office published new regulations regarding inheritance tax in the province.  A review of the legal position provides more beneficial reliefs which come into force in January 2017.

Changes made during August 2016

The new regulations relate to the main home and will only apply if the inheritor(s) is a parent, a child, a spouse or a relative over 65 who has lived at the address for a minimum of two years prior to the owner’s death. The property must then be kept for a minimum of three years (it was previously 5 years) before it can be sold. If this is the case, the tax will be calculated as a percentage of the value of the property being inherited as follows:

No tax is payable on properties valued at under €123,000
Between €123,000 and €152,000: 1%
Between €152,000 and €182,000: 2%
Between €182,000 and €212,000: 3%
Between €212,000 and €242,000: 4%
More than €242,000: 5%

It is important to note that the value of the property is not the market value. It will be based on the official value and the inheritance tax is paid to the regional government. Therefore, under these new rules, there will be little or no tax to pay.

Further changes effective from January 2017

In Spain, Inheritance Tax is payable by the beneficiaries. There is no tax payable by an individual beneficiary (if they are a parent, a child, a spouse or grandparent of the deceased) if the inheritance is under €250,000 (previously €175,000). From €250,000 to €350,000, tax is only payable on the amount in excess of €250,000. Tax is payable on the total amount inherited over €350.000.

There are more changes to come and we will let you know about future changes we we hear about them.

Please note: This post is for general information only. Please ensure that you obtain appropriate professional advice before acting on this information.

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