New regulations in the Spanish inheritance tax from January 2016

On 08/17/2015, a new EU regulation (EU 650/2012, EU ErbVO) entered into force; which has an impact on the right of inheritance.

So far, the British inheritance was applicable when the deceased at the time of his death was British.

From 08.17.2015 is that the inheritance of the state is to be applied, in which the deceased at the time of his death had his last habitual residence. That would, for example, when a Briton who was habitually resident in Spain, the Spanish inheritance.

Foreign rules on inheritance may differ from British inheritance part. For example, there are significant variations in the Spanish inheritance law on succession of the spouse to whose disadvantage compared to British inheritance.

Who has his habitual residence abroad, but wishes in case of death, that the inheritance of the land is used, which he is a national, has to make an appropriate choice of law in the future. This is the case even for Brits living in Spain.

This choice must expressly in a declaration in the form of a disposition of property upon death, as a rule, which is a testament, done.

For existing wills this clause should be the right choice necessarily supplemented so that there are no problems in the event of death.

According to the latest findings, we have come to the conclusion that non-residents should either its Spanish Testament supplementary to this clause or better completely revoked. A Testament in their home country, with the appropriate choice of law is currently sufficient in the event of death.

For further information on this topic please contact a lawyer or notary of your trust who can tell you the new rules in more detail.

The inheritance tax was reduced in general to 1% due to an EU regulation, from 01.01.2015. The increase in the inheritance tax from 01.01.2016 is staggered. That is, up to an amount of 700,000 euros, it remains at 1%. Only when this amount is exceeded, the excess is taxed more heavily.


Inheritance tax rates from 01.01.2016

Up to 700.000 €                             1%

€ 700,001 - € 999,999                    8%

€ 1,000,000 - € 1,999,999              11%

€ 2,000,000 - € 2,999,999              15%

3,000,000 €                                      20%