Update regarding Inheritance Tax Law in Andalucía
- Who must pay the inheritance tax?
The heirs and the legatees have to pay the inheritance tax.
Example for distinction between heirs and legatee: The heirs receive the general estate, but the legatees have a prior right to receive specific goods from the estate without being heirs.
- New Legal situation in 2018, tax exemption was increased to 1.000.000,- €.
Before January 2018, the estates until 250,000,- € were free of inheritance tax.
In 2018, the tax exemption has been increased up to one million euros (1.000.000,- €) per heir or legatee.
The estate in Andalucía is free of tax under the following conditions:
- If the heir or legate is a child, parent or a spouse of the testator
- If the assets of the heir are not superior than 1.000.000 €
In case the value of the estate is more than 1,000,000,- €, the tax is calculated over the difference between 1.000.000,- € and the value of the estate. Until 2017, the Inheritance tax was payable over the whole value of the estate.
© Christian Hofer, Abogado & Rechtsanwalt, RCHLegal, www.rchlegal.com