How to minimise spanish inheritance tax?
For those who have gone through the trauma of losing a family member who has left an inheritance, the situation can become a nightmare. This is due to the fact that the Inheritance and Donations tax must be paid. How to minimise Spanish inheritance tax? That’s a pretty common question that we’re going to try to answer in this article.
Can the payment of Inheritance and Donations tax be reduced?
The Inheritance and Donations Tax can’t be avoided. Taxes on inheritance in Spain can absorb a large percentage of any inheritance. For that reason you have to plan everything with the help of a professional to avoid that most of the inheritance goes to the coffers of the Government of Spain.
Among the different possibilities that can be put in place to reduce the amount that must be paid on the Inheritance and Donations Tax we can highlight:
- Take advantage of the exemption that the habitual residence has: This type of property has a deduction that goes from 95% to 99% of the tax quota.
- Donation in life: In this case, the donation in life of some assets, may save future property problems.</ li>
- Use the family business: this is another option to reduce the tax payment of an inheritance given that when a company is used, the transmissions have a minimum exemption of 95%. The company must be maintained for at least 10 years after the broadcast.
- Divide the inheritance among the largest possible number of beneficiaries is another alternative given that the more you receive the more you have to pay.
If all this seems too complex, the best option is to hire the services of specialized professionals who can advise you on everything you need to pay less in this kind of tax.
Other news related to inheritance tax:
- To claim a tax rebate enter here
- The EU Inheritance Law that came into force in August 2015
- The regulations and fees related to the spanish inheritance tax
- What you should know about the spanish inheritance tax for non residents
- Read in this post about spanish inheritance tax calculator
- Importance of knowing the Spanish Inheritance Tax Rates 2019
- Steps for inheritance in spain
- The goods covered by your inheritance in Spain in https://conveyancingslawsolicitors.co.uk/what-goods-does-my-inheritance-cover-if-i-do-it-in-spain/