Inheritance Tax: Proposed exemptions in Andalucia
The PSOE lost its majority in Andlucia in the 2015 election. It currently retains power as a result of its coalition with Ciudadanos. In return for its support for the 2018 budget, Ciudadanos has forced the PSOE to accept a substantial change to the Impuesto sobre Sucesiones y Donaciones (ISD), Spain’s inheritance and gift tax.
A press release published in September 2017 announced that the general exemption will be increased to €1 million per person – it is currently just €15,956.87 for close family members.
Inheritance Tax in Spain is payable by the beneficiaries of an inheritance. It is not levied on the estate of the deceased as it is in the UK. Consequently, if a Will leaves assets to a number of family members, they will all be entitled to their own €1 million exemption.
We suggest you await the release of the full text of the new exemption to ensure that it is exactly as expressed above. All in all however, this is very good news. Inheritance Tax in Andalucia has been a worry for many property owners and investors.
Susana Diaz (PSOE) and Juan Marin (Ciudadanos) agreed that these changes will come into effect from 1 January 2018. The law is however yet to be enacted.
We recommend you take legal advice before acting on this information.