New proposal to scrap the inheritance tax in Spain

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REDUCTIONS: Albert Rivera’s request will take many out of paying the ‘death tax’ Photo credit: Shutterstock

SPAIN’S centre-right party Ciudadanos (C’s) has announced proposals for a zero rate of inheritance tax. 

They have asked the PSOE Government to scrap the ‘death tax’ between parents and children and spouses altogether, and drastically reduce it for other family members.

Because of the current rates of tax in Spain, 2017 saw a record number of people actually refusing their inheritances – believed to be 1 in 10 – as the tax must be paid in advance of any assets being transferred to the beneficiaries; and they only have six months to pay that tax.  The C’s wasn’t that period to be increased to at least one year.

The party led by Albert Rivera says the tax should be reduced to zero where the main beneficiary is a child or a parent, spouse or partner and where the inheritance is also their current permanent home.

The tax exemption would additionally apply to other distant relatives where the beneficiary in question does not own a home of their own.

Zero tax rates would apply to inheritances of under €1 million, with the tax-free threshold for other relatives reduced to €125,000 and €350,000, depending how far removed they are from the deceased.

 

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